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Employers face 10% plus health premium hikes despite plan changes
Gallagher data shows specialty drug costs, including GLP-1 therapies, are a top challenge, and new rebate and PBM disclosure rules are tightening employer scrutiny.
More than a third of US employers reported that their health plan premiums rose 10 percent or more at their most recent renewal, even after making plan changes, according to data from Gallagher's 2026 Workforce Trends Report – Benefits Benchmarks.
The survey, which polled 3,717 US organizations from January to March, finds that employers are changing how they govern benefits and managing vendor relationships with more oversight, using data more systematically as healthcare cost pressure continues.
Healthcare costs for employer-sponsored plans are projected to rise 6.5 to 9.5 percent in 2026, the largest projected increase in roughly 15 years, while specialty pharmaceuticals are cited by 49 percent of employers as a top challenge, with GLP-1 obesity and diabetes therapies frequently flagged.
Regulatory developments are also reshaping the renewal conversation, with the Consolidated Appropriations Act, 2026, signed on February 3 requiring PBMs to pass through 100 percent of rebates and related remuneration to ERISA-governed employer plans, and a separate Department of Labor proposal that would require PBMs to disclose all forms of compensation to self-insured plan sponsors, which federal officials estimate could save $1 billion annually.