Employees Spend Up to $1,500 Out of Pocket as Employer Benefits Miss the Mark, Castlight Survey Finds

36% seek their own tools first and nearly half use consumer health apps as static, hard‑to‑navigate benefits fail to keep pace with employee needs

SANDY, Utah, April 28, 2026 /PRNewswire/ -- Castlight Health, a leader in healthcare benefits navigation, today released findings from its 2026 Employer Health Benefits Experience Survey, revealing a widening disconnect between the benefits employers offer and what employees actually use. Despite unprecedented investment in digital health and wellbeing programs, most employees are bypassing employer-sponsored options and instead building their own "DIY health ecosystems" of apps, devices and online tools, often at their own expense.

The survey of 2,000 U.S. employees found that while the majority report access to multiple health and wellbeing benefits, only about one‑third clearly understand what's available or use their benefits regularly. Instead:

• More than half use at least one consumer health or wellness app
• 46% pay out of pocket for solutions that feel more relevant or easier to use
• 61% spend at least $100 per year, with 29% spending more than $500 and 15% spending up to $1,500 annually

This out‑of‑pocket spending is not incidental. It reflects a workforce willing to invest personally when employer benefits feel too complex or too static to meet their needs, and it signals that employers may be leaving significant value on the table.

"People want to choose what works for them and the data is clear: Employees aren't disengaged because they don't care, instead it's because benefits are too hard to navigate. Without clear guidance when they need it, employees default to what they know, and they're willing to spend their own money to do it," said Castlight CEO Jonathan Porter. "Employers don't need to offer more point solutions. They need a better way to guide people to the right support at the right moment. When benefits feel intuitive, flexible and connected to everyday life, employees will use them and employers realize gains on engagement, outcomes and retention."

Key benefits trends uncovered in the survey include:

• Employees want greater flexibility of benefits and it influences retention. More than 80% of employees said they'd be more likely to stay with an employer that offers a flexible wellness allowance, underscoring the growing demand for choice-driven, employee-directed benefits.
  
  
• When a new need arises, many employees skip employer benefits entirely. 36% of all employees immediately seek their own solution, often paying out of pocket, rather than checking whether their employer offers support.
  
  
• Benefits are not evolving fast enough. Only 36% of employees said their benefits evolve with their needs. Nearly half report that offerings remain static even as their lives change—whether they're having a child, managing a new condition or simply getting older.
  
  
• Open enrollment is not when employees engage with their health. Only 7% of respondents said open enrollment was the trigger for benefits usage. Far more common triggers were doctor visits (47%), urgent or unexpected needs (22% each), which are the moments when employees often turn to consumer tools instead of employer programs.

Download the 2026 Employer Benefits Report: Inside the Minds of Today's Users report, which includes insights into how employers can improve benefits utilization and employee engagement.

Survey Methodology
The Castlight 2026 Employer Health Benefits Experience Survey was conducted in Q1 2026 using the Pollfish research platform. The national sample included approximately 2,000 U.S. employees eligible for employer-sponsored health benefits across diverse industries, generations, genders, races and company sizes.

About Castlight Health
Castlight Health simplifies healthcare navigation by providing a comprehensive and highly tailored digital platform and clinical services. Leveraging advanced personalization capabilities. Castlight identifies individual needs to deliver customized health and wellbeing experiences, guiding individuals through their unique health journeys and helping them engage with the right programs and care at the right time. Founded in 2008, Castlight enables large employers and health plans to drive better outcomes, improve engagement and maximize the value of healthcare benefits. Castlight operates as a business unit of Mosaic Health. Mosaic Health is a national care delivery platform expanding access to comprehensive primary care across Commercial, Individual Exchange, Medicare, and Medicaid health plans.

For more information, visit www.castlighthealth.com.

Media Contact
Erin Bocherer for Castlight Health
[email protected]
678-294-2258

SOURCE Castlight Health