What Employers Should Know About Group Health Plan Trends and Costs in 2026

How Small Businesses Can Cut Health Insurance Costs 2026

Rising costs and changing trends in group health insurance impact small and midsize businesses. It’s important to stay informed about new options and strategies that can help you manage these costs while offering valuable benefits to your employees.

Key Takeaways:

• Health insurance costs for employers will continue to increase, making it important to explore alternative plan options like tiered networks and HSAs.
• Mental health services and wellness programs are becoming a bigger part of employee benefits, which can help reduce long-term health costs.
• Offering telehealth services is a great way to improve employee access to care and reduce the need for in-person visits, saving both time and money.
  

Managing a company’s budget requires taking a clear look at the costs of healthcare. Current small business health insurance trends in 2026 show that mental health and wellness are now top priorities for many workers. By staying informed about these changes, you can make better decisions for your business. This allows you to offer competitive benefits that support your employees without overspending.



Rising Costs of Employer-Sponsored Health Plans

The cost of providing group health insurance continues to rise. In 2026, employers face higher prices for health plans. This is partly due to rising medical costs and more people needing healthcare.

For small business owners, these rising costs can be tough to manage. One way to handle the increase is by exploring cost-saving options, such as tiered networks or Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs). These options help reduce costs for employers and give employees more control over their healthcare.

It’s also important for employers to anticipate these cost increases early. Proactively reviewing your health plan options and considering alternatives to traditional coverage can help businesses avoid surprise cost hikes and adjust their budgets accordingly.

New Group Health Insurance Plan Designs

Group health insurance plans are getting more flexible. Employers are offering plans that better fit the needs of different employees. These plans may include more options for coverage, mental health services, and telehealth visits.

Preventive care is also becoming more important. By offering coverage for things like screenings and early intervention, businesses can help employees stay healthier and avoid long-term health issues. This also helps keep costs down over time.

Another important consideration for employers is offering a range of plan tiers that allow employees to choose the coverage that fits their needs. With more personalized options, employees can feel more confident in their health plan choice.

Mental Health and Wellness Benefits

Mental health is a big focus for employers. The pandemic has shown just how important it is to take care of employees’ mental health. Many health plans now offer more coverage for therapy and mental health support.

Employers are also introducing wellness programs to keep employees healthy. These programs can include things like stress management, fitness challenges, and virtual mental health resources. Supporting mental health can reduce burnout and improve employee productivity.

Some employers are even providing access to mental health apps or offering wellness coaching. These resources can be just as important as traditional healthcare services in promoting a well-rounded health plan.

The Role of Telehealth in Health Plans

Telehealth has become a popular option for both employers and employees. With telehealth, employees can see a doctor or therapist from home, making it easier to get care without taking time off work.

Expect telehealth to expand throughout 2026. Employers may offer more telehealth services, like virtual doctor visits, mental health support, and even remote physical therapy. This helps employees get care when they need it and saves employers money by reducing in-person visits.

For employees who live in rural areas or have limited access to healthcare, telehealth offers an important lifeline. It provides them with timely medical attention and reduces the need to travel for appointments, which can be especially helpful for those with busy schedules.

How To Manage Group Health Insurance Costs

With the cost of health benefits for employers rising, it’s important to have a strategy in place. Here are some ways you can manage these costs while still offering good benefits to your employees:

1. Evaluate Tiered Networks

Tiered networks offer different levels of care at different prices. By encouraging employees to use in-network providers, employers can reduce healthcare costs.

2. Offer Wellness Incentives

Wellness incentives, such as discounts for employees who take part in health programs, can help lower costs. Programs that encourage employees to stay healthy can also prevent expensive health issues down the road.

3. Use HSAs and HRAs

HSAs and HRAs are smart ways to help employees save money on medical expenses. They also give employers a way to control costs while offering employees more flexibility in how they use their benefits.

4. Benefits Management Software

Using benefits management software can make it easier to track and manage your health plan. It helps reduce administrative costs and makes it easier for employees to access their benefits.

5. Consider Self-Funding

For larger businesses, self-funding health plans can be a good option. This allows employers to take on more risk in exchange for potentially lower overall costs. Self-funded plans also provide greater flexibility in plan design and coverage options.

Preparing for Changes in 2026

Group health insurance will continue to be more flexible and focus on mental health, wellness, and telehealth in 2026. Employers should start thinking about how to adjust their health plans to keep up with these trends. By exploring different plan designs, offering wellness programs, and using HSAs or HRAs, businesses can manage costs and offer better benefits to their employees.

For more information on creating the right health plan for your business, contact Sacket Insurance.