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For a lot of small employers, one of next year's biggest cost increases shows up this fal…
For a lot of small employers, one of next year's biggest cost increases shows up this fall as a health plan renewal.
KFF went through the 2027 rate filings from 295 small-group insurers across all 50 states and D.C. The median proposed increase is 14%. Most insurers asked for somewhere between 10% and 20%.
Owners are feeling it. In eHealth's survey of more than 500 small and mid-sized employers, 54% of those offering group coverage said they're facing a double-digit increase for 2027. Eighty percent of those facing a hike said the size of it surprised them. And 73% said they're considering dropping traditional coverage.
That's a big call to make against a renewal deadline. Benefits are part of how you keep good people, and the cheaper options come with tradeoffs. KFF notes that level-funded plans can cost less up front for a healthy group, but they aren't guaranteed renewable. One hard claims year can change the price quickly.
So read the renewal like any other major purchase. Put the new number into next year's budget per employee, not as one lump. Ask your broker for at least two real alternatives, with the tradeoffs written down. Then talk to a few of your people about what they actually use before you change anything they rely on.
The renewal letter shouldn't be the one making the decision.
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