Recent data on SNAP participation point to a serious change in the food-access landscape. According to the Center on Budget and Policy Priorities, SNAP participation fell by about 2.5 million people between July 2025 and December 2025, with declines across every state.
For health benefit designers, this highlights a practical reality; when one major food-access channel becomes less available, other supports are needed to fill the gap.
OTC and healthy food benefits are often discussed as supplemental offerings, but the current environment gives them a more serious role. As SNAP becomes less reachable for some households, these benefits can carry more weight as practical supports that help people afford everyday necessities.
That does not mean they replace SNAP. They do not. But it does mean their value increases when other forms of assistance become less reliable, less generous, or harder to access. Healthy grocery benefits in this new reality carry a greater weight; becoming not just a nice-to-haves, but a lifeline that people depend on.
One of the clearest points in the SNAP data is that formal program availability and real-world access are not the same thing. The source article says policies aimed at lowering error rates are likely to cause eligible households to lose food assistance because of administrative burdens. It also points to more frequent verification requirements, delays, and wrongly denied or delayed benefits that are not even counted as errors in the current framework.
From our perspective, this matters well beyond SNAP itself. An OTC or healthy food benefit may be formally present, but if the value is too small, the coverage too narrow, or the redemption process is too confusing, its practical support value may still be limited at the household level.
This is where the strategic implication becomes clearer for benefit designers.
If food assistance pressure is rising, then supplemental benefits need to be evaluated with more seriousness. Three questions matter in particular:
Those questions are not just member-experience questions. They are design questions. In a tighter food-access environment, shallow benefits risk becoming symbolically present but practically weak.
Plans have an opportunity to think more clearly about what their supplemental benefits are really doing.
If OTC and healthy food benefits are treated as low-stakes add-ons, their design may remain narrow, underpowered, or operationally awkward. But if they are understood as part of a member’s practical access to food and everyday health supports, the design standard changes. From our perspective, dollars, usability, and redemption clarity are what matters.
That does not require abandoning discipline in benefit design. It means recognizing that real benefit value is measured not only by what is authorized, but by what a member can actually use.
The SNAP trend should be read as a signal. When public food assistance contracts, the practical importance of other support channels rises.
For health benefit designers, that raises a strategic question: are OTC and healthy food benefits being designed as marginal perks, or as meaningful supports that can hold up in a more financially pressured environment?
The answer will matter more as food-access strain increases. Plans that offer broader, more valuable, and more usable benefits may be better positioned to deliver real support in the moments when members need it most.
As SNAP availability tightens, OTC and healthy food benefits become more important as practical food-access supports. For benefit designers, that means supplemental benefits should be judged not only by how attractive they are on a brochure, but how they affect the calculus in their member’s decisions. We encourage all health plans to offer a benefit that is meaningful to their members and to build a network that makes it available to all.
Employer-sponsored insurance covers the majority of working Americans, and employers collectively spend roughly $1 trillion each year on health benefits. Yet recent data from Morgan Heath suggests that coverage alone does not guarantee consistent access to the conditions that support good health.
Of particular note is rising food insecurity among people with Employer Sponsored Insurances [ESI]. Sharply rising food costs are among Americans’ top concerns. Among individuals with employer-sponsored insurance, the share reporting food insecurity rose from 5.9% in 2021 to 8.5% in 2022, remaining elevated through 2023. (Source: Morgan Health, Food Insecurity Trends in Employer-Sponsored Insurance, 2026). That’s a 60% increase in just one year. Undoubtedly this was due to the economic shocks from the Covid-19 pandemic, but markets are still enduring high prices for many pantry staples. Long-standing advice on budgeting, meal-prep, and reducing waste are no longer providing their leverage; those who work increasingly can no longer afford to eat.
As employers evaluate how to improve workforce health outcomes, new policy innovations are needed to ensure that insured workers are able to maintain the health and well-being of both themselves and their families, with the expansion of ESI programs to include healthy grocery benefits.
In many cases the issue is not simply access to food, but access to balanced meals. Households with children are particularly affected. Moderate-income families earning between $75,000 and $100,000 reported food insecurity rates ranging from 12% to 16% in some cases. (Source: Morgan Health, Food Insecurity Trends in Employer-Sponsored Insurance, 2026)
These are salary ranges for some of our nation’s most critical positions, including teachers, nurses, and so on.
Food insecurity can influence both health outcomes and health care utilization. Individuals experiencing high levels of food insecurity report greater difficulty affording prescriptions and are more likely to rely on emergency services. One analysis found that 43% of individuals experiencing high food insecurity reported an emergency room visit in the prior year, compared with 17% of food-secure individuals. (Source: Morgan Health, Food Insecurity Trends in Employer-Sponsored Insurance, 2026). The data is patently clear; when basic health maintenance is out of reach for want of food, emergency services (and their requisite expenses) fill the gap. The consequences of chronic disease and their complications no longer simply afflict the poor and vulnerable, but now increasingly afflict America’s most productive workers.
As these trends become more visible, Morgan Health identifies ways employers are exploring new ways to support employee health:
- Medically tailored meals or produce vouchers
- Nutrition education programs
- Improved care navigation for mental health services
- Expanded maternal care support models
- Adjustments to employee premiums and cost-sharing
We’re pleased to see examples of how ESI may evolve to tackle this growing challenge, but this is only the beginning. These efforts recognize that workforce health is shaped by both medical care and the conditions that support healthy living. An insistence on simply "tightening the belts” will be sufficient to endure through these challenges. At a time when our families are under greater economic pressure than ever, "the only correct choice is to go hungry” cannot be an acceptable solution. Quite frankly, hunger should not be a problem that Americans face. We should hold with deep skepticism any policies or trains-of-thought that limit American families' fight against hunger.
By examining these factors alongside traditional benefits, employers can strengthen workforce health while improving the long-term effectiveness of their health plans. Implementing expanded healthy grocery programs offers immediate relief against hunger, while increasing access to care, boosting affordability, and improving healthy outcomes.
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