Your AR is Bleeding Cash (And Your Health Insurance Just Got 11% More Expensive)

Small Business Health Insurance Premiums Up 11% in 2026

If you provide health insurance to your employees, prepare for sticker shock.

The Increase

Small business health insurance premiums are rising a median of 11% for 2026, according to analysis of preliminary rate filings from 318 insurers across all 50 states and DC.​

Why It’s Happening

• Rising healthcare costs (estimated at ~9% inflation)​
• Higher hospital, physician, and prescription drug costs​
• Broader inflation and labor shortages​
• Specialty drug costs (especially GLP-1 obesity drugs)​
• Decreased enrollment and worsening risk pools in small group plans​

Real Math

If your company pays $15,000/year per employee for health insurance, expect to pay $16,650 in 2026—an additional $1,650 per employee.​

Your Move

1. Audit your plan options: Can you switch to a lower-cost plan tier?
2. Increase employee cost-sharing: Shift more premium burden to employees (within ACA limits).
3. Consider a health reimbursement arrangement (HRA): Some small businesses are shifting to HRAs with stipends instead of full group plans.​

Sources:

• Small Business Health Insurance Rate Increases 2026 - KFF / One Digital

The Regulation Decoder: Your AR is Bleeding Cash (And You Don’t Know It)

The Stat