Executive Oversight Reshapes Benefits Renewal Strategy as Costs Surge

For years, benefits renewal has been treated as a routine but reactive cycle. That approach is now facing scrutiny from executives who are examining the financial impact more closely and questioning steady annual cost increases. As companies brace for what some analysts call the biggest cost hike in years, these pressures are highlighting the growing unsustainability of the traditional approach.

Colton Storla, Partner and VP of Employee Benefits at North Risk Partners, has built a reputation for guiding employers beyond the traditional model. He brings a proven record of driving meaningful savings, highlighted by a public entity that saved over $1 million after implementing his recommended strategies. Storla also emphasizes education through his podcast, Community Connected Health, helping employers ask the right questions about transparency, direct care, and responsible health plan design.

"We live in 2026 where data, innovation, technology, and AI are everywhere. There has to be a better way than just picking the least bad option at renewal and repeating the cycle," says Storla. From his perspective, a major gap exists between the technology available and the strategies used to acquire it. Outdated procurement habits and a failure to analyze their own usage data leave many organizations making decisions in the dark.

• The new trifecta: In many organizations, benefits responsibility has become a C-suite-level concern, an evolution from its traditional place as a siloed HR function. With CFOs taking a closer financial look at benefits, organizations are forming cross-functional committees to balance cost discipline with employee needs. "Traditionally, benefits were an HR decision, but now the CEO and CFO are involved because it's such a large expense," Storla explains. "When you bring HR, the CEO, and the CFO together in a committee, you can pair the human element with the financial element to build a plan that truly serves your entire employee population, from new graduates to those nearing retirement."

• Million-dollar question: Executive oversight is often the first step in building a culture of accountability. Storla believes this change in philosophy typically begins when leaders start to deprogram the "my insurance pays for it" mindset and truly understand that every dollar flows from company profits and employee paychecks. "Employers are signing multi-million-dollar checks every month and beginning to question the value of their investment. They are asking whether their insurance carrier is truly acting in their best interest, and in most cases, they are finding the answer is no."

• The price is wrong: This awakening often prompts leaders to make a conscious choice. As Storla frames it, leaders must decide which set of problems they want: the passive, high-cost problems of the status quo or the proactive challenge of building a culture of shared responsibility. This shift becomes even more powerful when employers move to a self-funded model, gaining direct access to claims data and the flexibility to design plans that encourage smarter decisions. "I know an $80,000 knee replacement can be done for $22,000 at a preferred facility, and an $1,800 MRI can be done for $400," he notes. "There is massive cost and quality variation hidden in the marketplace, but employees are shielded from this reality. All they have is an insurance card, which they perceive as an unlimited credit card, leading them to assume that insurance will simply pay for everything."

For Storla, a key solution is to simplify plan design by creating clear, value-based choices. His philosophy is to design plans that reward high-value decisions while ensuring that low-value ones come with shared costs.

• Playbook for a new paradigm: For organizations ready to break the cycle, Storla offers a clear, three-step playbook. "As a first step, go to your insurance carrier and ask for two things: a copy of every contract and all of your health and pharmacy claims data. If you can't get access to both, you're probably in the wrong arrangement and you need to reevaluate," he says. The second step is to align with an adviser, not a broker. "A broker just quotes the market and presents the options. An adviser investigates the root causes of your costs and introduces targeted solutions to lower the frequency and severity of those claims." Finally, Storla recommends choosing a structure built to solve the real objective: reducing costs and enhancing benefits.

Storla’s closing argument puts the power squarely back in the hands of employers. He frames the challenge by noting that with healthcare now a five-trillion-dollar industry, there are five trillion reasons why the people making money don't want it to change. "Employers need to realize they hold the power," he concludes. "Roughly 70 percent of Americans are covered by an employer health plan. When employers get educated and demand change, the market will be forced to respond."