09/09/2026
Small business owners: 2027 health insurance renewals could bring another significant increase.
New analysis of proposed rate filings from 295 small-group insurers across all 50 states and Washington, D.C. shows a median proposed premium increase of 14% for 2027. Nearly 6 in 10 insurers are proposing increases between 10% and 20%.
What’s continuing to push costs higher?
🏥 Rising hospital, physician, and other medical costs
💊 Higher prescription drug spending, including specialty medications
📈 Increased use of healthcare services
💉 Continued growth in GLP-1 utilization
🧠 Rising behavioral health utilization
There’s another trend worth watching: more small employers are moving away from traditional fully insured plans and exploring alternatives such as level-funded coverage.
For some businesses, that can create opportunities for lower upfront costs, greater flexibility, and potential refunds when claims run lower than expected. But level funding isn’t the right fit for every employer, which is why it’s important to look at the full picture before making a change.
If your 2027 renewal comes with sticker shock, you don’t necessarily have to simply absorb the increase. This is a good time to review your benefits strategy, compare the market, reconsider plan design, and explore whether alternatives such as level funding or an ICHRA could make sense for your business.
The earlier you start that conversation, the more options you may have.
Advanced Benefit Solutions can help you evaluate your options and build a strategy that fits your business and your employees.
https://www.healthsystemtracker.org/brief/how-much-and-why-premiums-are-going-up-for-small-businesses-in-2027/
Each year, health insurers submit rate filings to state regulators outlining their expectations for the coming year and proposing premium changes for Affordable Care Act (ACA)-compliant plans. This analysis examines filings in the small group market, which covers plans offered to small businesses (g...
