2026 MARKET TRENDS

Digital Health

Key Takeaways

Employers are prioritizing virtual care, navigation tools and cost transparency solutions
Health plans increasingly embed digital health options, streamlining access and contracting
AI is reshaping benefits administration and clinical care, requiring governance and oversight

Advanced technologies are strengthening digital health tools, making it easier for employees to navigate benefits and access high-quality care.

Overview

The U.S. digital health landscape remains stable, with venture funding through the third quarter of 2025 reaching $9.9 billion. Clinical workflow enhancements and AI-powered tools continue to dominate investment, accounting for 42% of total funding and widening the gap with care coordination and disease treatment categories.1 Despite uncertainty related to the current administration’s healthcare agenda, particularly around spending cuts, public health reform, transparency, consumer choice and technological innovation, new CMS policies and payment models are showing promise for greater integration and reimbursement of digital health innovations within the traditional healthcare ecosystem.

In late 2025, the Centers for Medicare and Medicaid Services (CMS) Innovation Center launched a new 10-year payment model called the ACCESS Model, which could be the catalyst for deeper integration of digital innovation into the standard of healthcare. New CMS policies and payment models are advancing the integration and reimbursement of remote monitoring for chronic condition management within the traditional healthcare ecosystem. While it will take time, this marks an important step toward aligning innovation with clinical practice and creating a truly integrated, patient-centered ecosystem.

According to the Brown & Brown Employer Health and Benefits Strategy Survey, employers plan the following actions in the next year:

plan to introduce virtual primary care

plan to add or enhance cost transparency tools

plan to add or enhance navigation and advocacy programs

plan to add second opinion programs

Employers Continue to Leverage Digital Health Solutions

Nearly half of employers (46%) report that AI and digital health will have the greatest influence on their benefits strategy over the next two to three years. While point solution fatigue persists, at least one-third of employers expect to continue adding targeted solutions to address evolving employee health challenges.2

Advanced technologies are strengthening digital health tools, making it easier for employees to navigate benefits and access high-quality care. When deployed thoughtfully, technology can help streamline fragmented experiences into seamless, personalized, member-centric journeys.

To help reduce fragmentation and ensure measurable impact through improved experience engagement and cost efficiency, employers can:

Set clear objectives based on data and employee feedback
Take inventory of the current benefits ecosystem
Vet vendors thoroughly, emphasizing integration capabilities, data standards and measurable outcomes

Digital Health Solutions Increasingly Offered via Health Plan

Digital health solutions are increasingly integrated into health plans, either as in-network options or as buy-up programs. Depending on the carrier, embedded solutions may include behavioral health, digestive health, nutrition, women’s health (including menopause care), physical therapy, dermatology, sleep, substance use support and more. Embedding these solutions within the health plan streamlines contracting and expands access to innovation, particularly for small and mid-sized employers.

However, a significant challenge remains — lack of awareness that these virtual solutions exist or how to access them. This gap of visibility can result in duplicated services, fragmented care and unnecessary costs.

Employers and brokers should consider asking health plans:

Which virtual and digital health solutions are included as in-network or buy-up options
Whether employers have the choice to opt-in or opt-out, and how employers and employees are billed for services
How members are made aware of programs and providers (directory, communications, app, portal, etc.)
What reporting is available on utilization and outcomes

AI Reshaping How Employers Manage Healthcare Benefits

AI is transforming the administration and delivery of healthcare benefits by streamlining processes, expanding access to high-quality care and advancing outcomes while helping manage costs. In 2024, U.S. digital health startups selling AI-enabled solutions to employers raised $290M, and AI-enabled startups offering benefits administration solutions alone raised $130 million from Q1–Q3 2025.1 While nearly half of employers (46%) surveyed by Brown & Brown expect AI to have the greatest impact on their benefits strategy over the next two to three years, the immediate next steps can be elusive.2

To address the incoming influx of AI solutions:

Ensure AI solutions account for employee and employer concerns, including data security, bias, equity and the continued importance of human oversight and connection
Establish a cross-functional governance structure, involving IT and compliance teams, which is critical for building organizational trust and helping ensure responsible AI use
Build an ongoing evaluation process to help ensure AI solutions are accurate and effective

Primary Areas Where AI is Driving Transformation

BENEFITS OPERATIONS:

Reduces manual tasks, improves accuracy and enables HR teams to focus on high-value activities, oversight and human-centered interactions

EMPLOYEE EXPERIENCE:

Supports personalized recommendations, plan decision-making, timely care engagement and navigation to high-quality, cost-effective providers

CLINICAL CARE:

Identifies rising-risk members, supports prevention efforts, facilitates care gap closure and aids in treatment accuracy

DATA & ANALYTICS:

Leverages HR, claims and benefits data to forecast costs, guide plan design and identify emerging risks or underserved populations

New Methods of Prevention Increase Access and Early Detection of Disease

New direct-to-consumer screening tools, including genetic testing, blood biomarker analysis and multi-cancer early detection tests, as well as mobile technologies for digital health screenings and home lab testing, are emerging to enable insight into health risks earlier — shifting healthcare toward earlier intervention. These tools show particular promise in early cancer detection and identifying genetic risks related to cardiovascular disease and cancer.

As employers prioritize prevention, more digital screenings, home lab testing and education intervention programs are expected to market to employers directly. Early detection can reduce healthcare costs, absenteeism, disability claims and signal an employer’s commitment to employee well-being. However, some innovations carry high upfront costs, and ROI timelines remain uncertain.

Employers considering upstream preventive testing should consider the following:

Vet vendors for clinical validity and appropriate clinical follow-up, strong data security and transparent consent processes
Understand privacy and anti-discrimination laws such as GINA, ensuring programs remain voluntary and confidential
Consider phased rollouts aligned with evidence-based guidelines

In the meantime, employers should continue promoting covered preventive screenings, evaluate reporting to identify gaps in care and ensure that plans and vendors use available tools to target members overdue for screenings.

1Rock Health. Digital Health Venture Funding Database, Data Through Q3 2025. 2Brown & Brown. Employer Health and Benefits Strategy Survey, 2026.

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