Survey of 550 Health Plan Executives Reveals Dramatic Upheaval in Top Challenges Facing Payer Organizations and the Strategies Used to Address Them

As healthcare organizations navigate an increasingly complex policy environment, 85% of health plan executives say regulatory pressures are impacting their costs and margins, according to new research published today by HealthEdge^®. The report, “The Great Rebalancing: Inside the New Realities Shaping Health Plan Performance,” identifies the top challenges in the payer market, how they are evolving, and strategies health plans are deploying to overcome them.

HealthEdge’s fifth annual survey of health insurance leaders, which gathered responses from more than 550 executives, found a seismic shift from year-to-year in the issues they view as their top challenges. While cost management continues to be the number one concern, the focus executives are placing on other challenges – which are also tied to costs - have changed dramatically. Notably, following the passing of the One Big Beautiful Bill Act, regulatory and compliance pressures have outranked challenges such as member satisfaction and workforce shortages, which executives identified as more significant last year.

Tech Investments Rise, While Security Focus Falls

Health insurance executives are overwhelmingly turning to technology and services as their primary strategy to combat rising costs and address regulatory challenges. In fact, the focus executives are placing on “IT and business alignment” has changed significantly, moving up five spots from ranking dead last in a list of challenges last year. However, when asked about priorities for technology investment, data security, last year’s top priority, fell to become one of the least important areas of focus for executives.

This dramatic reprioritization doesn’t imply that security is solved, it reflects a shift in focus towards executives’ top challenges – managing costs and navigating regulatory and competitive pressures.

According to the survey, 60% of respondents are automating manual processes using AI, machine learning or advanced analytics and increasing their use of digital tools to over the next 12 months to reduce spend. Additionally, more than half of payers (51%) are applying AI or machine learning to avoid penalties associated with interoperability mandates and prior authorization requirements by automating more approvals.

“The cost of healthcare is outpacing both inflation and wage growth, and this existential challenge is straining every corner of the industry ecosystem. Health plan leaders are in the untenable position of trying to control costs, maintain pace with regulatory change and meet the rising expectations of both members and providers,” said Alan Stein, Chief Solutions Officer at HealthEdge. “There are difficult decisions on the horizon in the coming year, but it is clear payers are embracing modern, connected and scalable technology and services to support collaborative, data-sharing partnerships. AI has rapidly emerged as the primary strategy to help combat rising costs and meet regulatory requirements, and investments around technology modernization, interoperability and automation reflect that.”

Executives Invest in Digital Engagement and Automation to Improve Member Experience

As outlined in the report, there is a misconception between payer executives and their members on the perceived role of a health plan. In this survey, 76% of health plan executives said their members see them as a partner in the care journey. However, according to HealthEdge’s 2025 Healthcare Consumer Survey, only half of the 4,500+ consumers surveyed viewed their health plan as a true partner and not simply a payer of claims.

Payers are accelerating investments in digital tools to address this discrepancy and bring themselves closer to their members. In fact, more than half of the executives polled said their organizations already offer online scheduling systems (59%), personalized health and wellness recommendations (57%) and a mobile app (53%) to their member populations.

With mounting pressure on margins and increased consumer volatility, health plan leaders are rapidly expanding the deployment of automation and next generation solutions to deliver a seamless experience and strengthen member relationships. For example, while just 36% of payer organizations currently offer chatbots today, 50% of executives committed to implementing them within the next year. Executives are also prioritizing features that will directly improve engagement, satisfaction and retention, including:

• Virtual concierge and navigation services (44%)
• Digital health assessments (43%)
• Auto-adjudication for faster, more accurate claims payments (39%)
• Increased personalization through better data sharing and departmental integration (38%)
• Enhanced or expanded member service centers (35%)
• Omnichannel flexibility and member portals (32%)

This research was conducted through a survey of more than 550 health plan executives in the U.S. in October 2025 as a look forward at planning for 2026. The complete report, “The Great Rebalancing: Inside the New Realities Shaping Health Plan Performance” can be downloaded at https://go.healthedge.com/2026-Payer-Planning-Survey.

About HealthEdge:

HealthEdge^® is trusted to provide the technology and services that power health plans’ most important value streams. With an integrated platform of solutions spanning claims administration, quality improvement, prospective payment accuracy, provider network management, care management, member engagement and risk adjustment, HealthEdge enables health plans to converge their data so they can harness automation and the promise of AI. Combining this next-gen technology with services and expertise gives health plans unmatched capabilities to deliver a future of frictionless and cost-effective healthcare experiences. For more information, visit HealthEdge.com.

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