My group health insurance increased by more than 30%. What can I do?

HR communities are buzzing with reports of 30-40% increases in health insurance. There’s something you can do, but you have to start NOW.

For years, health insurance costs have already been increasing at more than double the rate of inflation. But even factoring in that trend, next year’s numbers seem like a prank. 

The spikes are forcing hasty, disruptive restructuring. People are looking at switching PEOs, overhauling benefits setups, adjusting hiring plans. It’s bad. 

But there are things that employers can do to get the health insurance boot off their neck while still protecting their team’s access to care. 

Health Reimbursement Accounts (HRAs) can offset the volatility of health insurance costs by letting employers lock in their spend. For finance teams, it creates stability and control in one of the most unpredictable line items on the balance sheet. 

Here’s how it works:

1️⃣ Pair a lower-premium, high-deductible plan with an HRA that covers part of the deductible.

2️⃣ Because most employees won’t max out their deductible, premium savings outweigh reimbursements.

3️⃣ Net effect: the company saves money while employees maintain access to coverage.

Since HRAs are typically administered outside your PEO or core health plan, you can layer them onto the systems you already have. You don’t have to rip out critical infrastructure like payroll, HR systems, or benefits administration tools to make it work.

Curious about how it works? I’ll drop more information in the comments. 

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