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Employer-sponsored health insurance costs are rising sharply. Average family premiums were nearly $27,000 in 2025. That was up six percent from the prior year. Forecasts for 2026 are for further increases – between 6.5% and 9.0%.

Often, in the past, employers have absorbed these premium increases. Or, they have opted to share the increases with employees. However, that could be changing. Employers are now considering a variety of tactics to deal with escalating health insurance costs.

How Are Employers Shopping Smarter for Health Coverage?

Broadly shopping the market. Looking at all carriers, plans, and funding types. Some clients may be open to alternative ideas. Some who have never considered an HMO may consider it now. Others who have always favored fully insured plans may be willing to switch to self-funding, level-funding, or a PEO. Some California groups may want to look at the CaliforniaChoice multi-carrier exchange for the first time. It offers employer cost control and increased choices for participating employees. In Nevada, Association Health Plans are another option. Word & Brown’s Nevada carrier partners offer a roster of AHPs.

Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs) may be other strategies. They could offer increased flexibility and/or potential savings. Ask your Word & Brown (W&B) rep for help in comparing options and generating quotes.

What Are High-Performance Provider Networks?

Becker’s Hospital Review says that one-fourth (24%) of employers are considering high-performance networks. These are curated, narrow networks of doctors, specialists, and hospitals. They are based on data-driven, quality-of-care metrics, and cost efficiency. Their aim is to reduce total costs and improve patient care outcomes (as compared to traditional, broader networks). One example is the Blue High Performance Network established by Blue Cross Blue Shield.

High-performance networks frequently use value-based reimbursement. That links provider pay to performance metrics rather than volume of services. Care is available only in-network except in case of emergency.

How High-Deductible Health Plans Help Employers Control Costs

Nearly one-third of covered workers are already in high-deductible health plans. These shift more financial burden to employees. Monthly premiums are often lower, but employees are required to pay high deductibles before their health plans begin to pay. In 2026, the minimum deductible for an HDHP is $1,700 for an individual plan; for a family plan, it’s $3,400. The maximum out-of-pocket limits are capped at $8,500 and $17,000 respectively.

What Is a Variable Copay Plan — and Why Are Employers Considering It?

Becker’s says about one-third (29%) of employers are considering variable copay health plans. These deductible-free plans replace coinsurance with specific, upfront copayments for care. Costs vary based on the provider’s efficiency and quality. Members can select high-value providers to pay less, while taking advantage of improved price predictability.

In contrast to HDHPs, variable copay plans eliminate deductible-based cost-sharing for in-network care. This helps members avoid unexpectedly large bills. These variable copay plans also offer transparent pricing before care. Costs are assigned based on the provider and facility.

Variable copay plans reward members with lower copays for choosing lower-cost providers. Some plans also offer bundled services. This can include doctor, facility, and anesthesia charges.

Mercer notes that employer adoption is relatively low – about seven percent of larger employers. However, more than a third of large employers are expected to consider them by 2028.

How Word & Brown Can Help You Navigate Rising Health Care Costs

Of course, increased cost-shifting and cost sharing with employees may be preferred by some employers who are afraid of too much change. Whatever their preference, your W&B team will work with you to find the right solution at the right price.

If you’re not already working with W&B, call 800-869-6989 or register online today to get started.