Health care costs aren’t slowing down. In fact, employers are expecting an estimated 9% increase in health care costs in 2026. And it’s not just a local issue. Rising U.S. costs are impacting benefits strategies around the world. So the big question is: How do you keep offering great health benefits and stay on budget?

That’s where brokers and smarter strategies come in.

Why Health Insurance Premiums Keep Rising

There’s no single reason costs are going up. It’s a mix of factors, including:

• Increased use of care (especially specialty drugs like GLP-1s)
• Rising cancer treatment costs
• Medical inflation
• Changes in risk pools
• Higher admin and labor costs across the system

All of this adds up fast, and employers are feeling the pressure.

What Employers Are Doing to Control Health Care Costs

To stay ahead of rising health insurance premiums, many employers are rethinking their approach. Here are some of the most common strategies:

1. Shopping the Market More Aggressively
Employers are exploring more options than ever — fully insured plans, self-funded models, PEOs, high-deductible plans with HSAs, and more. A broker can help you compare plans, networks, and pricing side by side.

2. Exploring Narrow or Alternative Networks
Some employers are choosing smaller, high-quality provider networks to help reduce premiums.

3. Considering ICHRAs
An Individual Coverage Health Reimbursement Arrangement (ICHRA) allows employers to reimburse employees for individual coverage and medical expenses, often with tax advantages. To learn more about ICHRAs, visit HealthCare.gov.

4. Adjusting Cost Sharing
Raising deductibles, copays, or employee premium contributions is another lever, but not always the most popular one.

5. Negotiating More Strategically
Brokers and administrators can often help negotiate better rates and terms.

A Smarter Option: A Private Health Exchange

That’s why more employers than ever are turning to a private health exchange. Instead of offering one plan to everyone, a private exchange lets you:

• Set a fixed contribution toward premiums
• Offer multiple plan options and networks
• Give employees the opportunity to choose what works best for them

This approach helps balance cost control with employee satisfaction.

How CaliforniaChoice Helps Control Costs and Expand Options

CaliforniaChoice is a multi-carrier private health exchange designed to give you more flexibility without adding complexity. Here’s how it works:

• You set your budget (fixed dollar amount or percentage)
• Employees choose their plan from a wide range of options
• You stay in control of your costs, year after year

If an employee wants a richer plan, they can pay the difference. If they want to save money, they can choose a lower-cost option. Simple, flexible, and predictable.

More Choice for Employees

With CaliforniaChoice, employees aren’t stuck with a one-size-fits-all plan. They can choose from:

• HMO and PPO options
• Health Savings Account (HSA)-compatible plans
• 100+ coverage options across seven major health plans, including:
  • Anthem Blue Cross
  • Health Net
  • Kaiser Permanente
  • Sharp Health Plan
  • Sutter Health Plan
  • UnitedHealthcare
  • Western Health Advantage

That means better access to doctors, specialists, and hospitals across California.

Built to Help You Recruit and Retain Talent

In a competitive hiring market, benefits matter more than ever. Offering more choice can:

• Improve employee satisfaction
• Help attract new talent
• Increase retention

Because when employees can pick a plan that fits their needs, they’re more likely to value their benefits.

Control Costs at Renewal Without Starting Over

One of the biggest advantages? You stay in control year after year. At renewal, you can:

• Adjust your contribution up or down
• Keep your employees in the same program
• Avoid the disruption of changing carriers

Employees can also change plans if their needs change without leaving the program.

More Than Just Health Benefits

CaliforniaChoice goes beyond medical coverage with valuable extras, including:

• Flexible Spending Accounts (FSA)
• COBRA administration
• Premium Only Plan (POP) setup
• Prescription savings (up to 80%)
• Fitness memberships and wellness discounts
• Vision, hearing, and pet insurance savings
• Entertainment and travel discounts through Cal Perks

These added benefits help employees get more value without increasing your costs.

The Right Strategy for Your Business

Health insurance premiums are rising, but your costs don’t have to. With the right strategy and the right broker you can:

• Control your health benefits budget
• Offer more choice to employees
• Stay competitive in today’s market

CaliforniaChoice makes it possible to do all three. Check with your employee benefits broker to get quote from CaliforniaChoice. If you don’t already have a broker, it’s easy to search for one at MyCalChoice.com.