We’ve officially hit Q4, one of the busiest times of year for employee benefits. While you’re juggling renewals, open enrollment, and planning for 2026, we’re breaking down the biggest trends in group health insurance, so you don’t have to wade through pages of reports.

Group Health Insurance Trends

Here’s what you need to know:

Climbing Costs

No surprise here, premiums are on the rise. Employers are bracing for another jump in group health insurance costs for 2025–2026.

• PwC projects an 8.5% increase in 2026.
• Business Group on Health puts the median increase at 9%.
• For context, increases were 4.6% in 2022, 7.5% in 2023, and 8.2% in 2024.

Why the spike? Advanced (and expensive) technology, rising prescription drug use and costs, and ongoing health care consolidation. Bottom line: budgets will need to stretch further.

Shifts in Plan Design

Mercer’s 2026 Survey of Health and Benefit Strategies predicts changes from employers as they tackle rising health care costs.

• GLP-1 Weight Loss Medications: A 2025 report from RAND says nearly 12 percent of Americans have used Glucagon-Like Peptide 1 (GLP-1) drugs for weight loss. While 12% of Americans have used them, interest is even higher — especially among women in their 50s and early 60s. These medications are now being studied for more than diabetes and weight loss — think heart health, kidney disease, sleep apnea, and even Alzheimer’s. But here’s the catch: coverage isn’t consistent. Less than half of large group plans cover them, and smaller groups see even less coverage. With costs rising, expect lots of debate in 2026.
• Employee Well-Being & Mental Health: Employers are doubling down on resources to help employees manage stress. That includes everything from meditation apps to expanded mental health benefits. It’s not just about wellness perks, it’s about retention and keeping teams healthy.
• Telehealth: Telehealth exploded during COVID-19, and it’s not slowing down. Use is 38 times higher now than before the pandemic. Employees expect it, and employers are making sure it’s part of the package.
• Alternative & Integrated Care: Acupuncture, meditation, and other complementary therapies are moving mainstream. In fact, 36.7% of adults use some form of alternative medicine today, up from 19.2% two decades ago. More employers are weaving these options into benefits packages.

Growth of ICHRAs and HSAs

A new law passed in July 2025, called the One Big Beautiful Bill (OBBB), is shaking things up, too. Here’s what it means:

• ICHRAs are now officially codified as CHOICE HRAs (Custom Health Option and Individual Care Expense Arrangements). Employers can use pre-tax dollars to help employees buy individual health plans.
• HSAs are expanding too — now available with certain ACA Marketplace plans and direct primary care.
• Small businesses get new tax credits for offering CHOICE HRA arrangements.

Translation: more flexibility for both employers and employees.

Choosing Your Group Plan

As you evaluate your group’s health plan options for 2025-2026, keep these in mind:

• Networks: Make sure plans include the doctors and hospitals your employees want.
• Group Size: If you’re an Applicable Large Employer (ALE) with 50+ full-time equivalent employees, you’ll need to meet ACA requirements or risk penalties. Helpful calculators are available at Healthcare.gov and CalChoice.com.
• Cost-Sharing: With CaliforniaChoice, you can share costs your way — by selecting a percentage of costs or a fixed dollar amount per employee.
• Trusted Advisor: A broker can simplify everything, from compliance to cost control. Don’t have one? CaliforniaChoice can help you connect.

The takeaway: Costs are climbing, coverage is shifting, and new options are on the table. With the right plan design (and the right advisor), you can keep your benefits competitive and your employees covered.