There’s a spike forecast for group health insurance premiums for 2026. That is driving more employers to reconsider their options. Projections vary, but Pricewaterhousecoopers (PwC) is anticipating an 8.5% increase. Others predict 6.5% to 9.5%. Small businesses are expected to be particularly hard hit.
As inflation continues to impact both employers and employees, client priorities are shifting. Here are five key ways inflation and rising costs are changing how businesses choose health plans.
Key Trends in How Inflation Is Affecting Health Care Costs
1. Increased Focus on Affordability
Some are sharpening their focus on affordability. Employers are prioritizing lower premiums and ways to reduce out-of-pocket costs for employees. High-Deductible Health Plans (HDHPs) are being considered again. They saw significant growth in the 2010s but have leveled off and even declined recently. When paired with a Health Savings Account (HSA), an HDHP can be an attractive, cost-saving option.
2. Greater Interest in Cost Transparency
Clients are looking for clear, upfront information about total plan costs. That’s not just premiums, but deductibles, copays, prescription drugs, and other costs. Tools to help compare costs across plans are now in higher demand.
3. Shift Toward Narrow Networks
To help them save, more employers are choosing plans with more localized provider networks. Even if it means fewer choices. Employers are also exploring regional carriers that offer more competitive pricing. For insurers, narrower provider networks mean a greater opportunity to control costs. That reduces premiums and better negotiated rates.
4. Increased emphasis on value-added benefits
Rising costs are driving employers to seek a bigger bang for their bucks. That includes offering telehealth and telemedicine, mental health support, and/or wellness programs. Giving employees access to voluntary coverage options is also of increased importance. Employers are scrutinizing the value of everything they are offering to workers.
5. Increased employee cost sharing
While it has always been an option for employers, in recent years, many have tried to hold the line by absorbing cost increase themselves. With the increase in 2026 higher than before, many must now share the burden with employees.
A Partner for Navigating Health Care Costs
Your relationship with Word & Brown gives you access to people, tools, and technology to help you find the right plan for each of your clients. Our quoting platform is the industry standard when it comes to Small Group quoting. You can instantly search, confirm, and build quotes with the doctors, medical groups, and hospitals your clients want. You can generate quotes with side-by-side plan comparisons, so it is easier for clients to make a final decision. Plus, you can customize your output with your agency info and logo.
As the market continues to shift, as inflation escalates, and as clients’ demands change, you can count on Word & Brown to be here to help you adapt and thrive. We’ve been working with brokers since 1985, and we’re committed to delivering Service of Unequalled Excellence. Contact your W&B rep. Or if you’re not already doing business with us, call 800-869-6989 or register online today
