Health insurance isn’t just another line item—it’s a talent magnet and a retention powerhouse. But even the best plan can outgrow its usefulness.
In fact, average small group health insurance premiums are rising 13.6% for 2026 (Colorado Division of Insurance)—the biggest jump in years. And 68% of U.S. employees say health benefits are a key factor in deciding whether to stay or go (SHRM).
So how do you know when it’s time to make a change before costs or morale get away from you?
Here are five clear signs it’s time to shop for a better employee health insurance plan.
Why Employee Health Insurance Matters More Than Ever
1. Premiums Are Rising Faster Than Your Budget
It’s normal for health costs to creep up—but when renewals bring sticker shock year after year, it’s time to ask tough questions.
- Annual premium hikes: Are they outpacing revenue growth? The 13% jump in 2026 is nearly 5 times higher than 2026’s expected inflation rate.
- Deductibles and co-pays: Are employees shouldering more each year?
- Competitor comparisons: Are you paying more than similar companies for the same coverage?
Run a side-by-side with other carriers, PEOs, or plan designs (like high-deductible + HSA) to see if you can lower spend without sacrificing coverage.
Pro Tip: Ask your broker or PEO to run a “total cost of care” analysis, which factors in claims experience, pharmacy costs, and projected utilization. This can reveal savings opportunities beyond the monthly premium.
2. Employees Aren’t Happy with Their Coverage
Your team is the best early-warning system. Dissatisfaction with plan options or out-of-pocket costs can quietly drive turnover.
- Survey employees or hold short “benefits town halls.”
- Ask about coverage adequacy, ease of use, and preferred doctors/hospitals.
If you hear repeated frustration, like limited networks or clunky claims, take it seriously. A small tweak or new carrier could turn disengagement into loyalty.
Consider adding anonymous comment boxes to capture honest feedback and track recurring themes like mental health support, telehealth access, or specialty care.
3. Your Workforce Has Changed
A benefits strategy that fit five years ago might miss the mark today. Consider:
- Growth spurts that shift your risk pool. Going from 15 employees to 75 dramatically changes plan pricing and eligibility.
- Age and family changes. More parents may mean higher demand for maternity coverage and pediatric care.
- Health trends. Chronic conditions such as diabetes or heart disease require more robust management programs.
Updating coverage to match your current demographics keeps the plan relevant and your team cared for.
If your company is now fully remote or hybrid, consider national networks like Kaiser or Aetna, rather than local HMOs. A workforce spread across states may need broader coverage or telehealth-forward plans.
4. Your Coverage Hasn’t Kept Up with Modern Care
Healthcare moves fast. If your plan lacks key services, employees may face gaps that lead to stress or surprise bills.
Must-haves in 2026 include:
- Mental health and therapy support: With burnout at record highs, access to counseling is table stakes.
- Telehealth/virtual visits: Convenient, low-cost doctor visits save time and money.
- Preventive and wellness programs: From biometric screenings to nutrition coaching, these keep employees healthier and claims lower.
Plans that skip these benefits risk higher absenteeism and lower morale—and may make you less attractive to new talent.
5. The Market Offers Better Options
The insurance marketplace changes every year. New carriers, digital-first plans, and innovative wellness programs could cut costs or boost satisfaction.
Watch for:
- Telehealth-first plans and mobile health apps that lower costs and increase access.
- Flexible, customizable plan structures that let employees choose coverage levels that fit their lifestyle.
- Integrated wellness and chronic-condition management that reduce long-term claims.
- Professional Employer Organization (PEO) solutions or competitive PEO quotes that bundle benefits, HR, and compliance services—often unlocking large-group buying power and potentially better rates.
Even if your current plan feels fine, it’s worth an annual “market check” to see if new entrants, regional carriers, or PEOs can deliver a stronger price-to-coverage mix.
Quick win: Don’t just renew—re-shop your plan. Contact us today and we’ll help you compare options to make sure you’re getting the best value.
How to Shop Smart (Without Losing Your Weekend)
A little structure turns a daunting task into a smooth process:
- Audit your current plan — review claims data, renewal rates, and pain points to understand what’s driving costs.
- Gather employee feedback — learn what’s working and what’s not to guide plan improvements.
- Run an RFP or reach out to PEOs — compare coverage, networks, and costs across multiple carriers and explore whether a Professional Employer Organization can deliver bundled benefits, large-group buying power, and administrative support.
- Model scenarios — evaluate PPO vs. HSA, different employer contribution levels, and long-term sustainability.
- Communicate clearly — explain changes early, provide FAQs, and host Q&A sessions so employees feel informed and confident.
This approach can save significant dollars and increase employee confidence in leadership.
Take Action Before Renewal Season
Health insurance isn’t set-and-forget. It’s a strategic asset that directly affects your people and your bottom line.
Start gathering employee feedback and benchmarking plans now—well before renewal deadlines hit. Early action gives you the flexibility to negotiate, educate, and implement changes without a scramble.
Your future team (and finance department) will thank you.
Next Step: Download our 2026 Open-Enrollment Planning Checklist to get started today.
