09/25/2025
A recent report from the KFF has released data that small businesses with Affordable Care Act (ACA)-compliant plans could face a median premium increase of 11% for 2026, according to a new analysis of preliminary rate filings from 318 insurers across all 50 states and DC. A deep dive into filings from 16 states and D.C. (with a 12% median proposed rate increase) shows that these small group market insurers cite rising health care costs (commonly estimated at about 9%) as the primary driver of the 2026 rate hike, including higher prices for hospital care, physician services, and prescription drugs.
Some insurers also cite broader inflation, labor shortages, uncertainty about tariff-driven cost increases, specialty drugs like GLP-1s, and decreased enrollment and worsening risk pools in small group plans as sources of the cost increases. A subset of insurers have responded to mounting prescription drug costs by excluding coverage of GLP-1s for weight-loss in 2026. Final premium changes are expected to be published in early fall.
You can read more about the findings here: https://www.healthsystemtracker.org/brief/how-much-and-why-premiums-are-going-up-for-small-businesses-in-2026/?utm_campaign=KFF%3A%20Health%20Costs&utm_medium=email&_hsenc=p2ANqtz--BiquUe1zWjUD_WbFOJA5uYFooEUztOShrq33w95eFWRzgHRPjJtny0sicw1hW_t3DgJWAC6VefWpJ2E7WjkviIFf8Pg&_hsmi=382037635&utm_content=382037635&utm_source=hs_email %20of%20proposed%202026%20rate%20changes%20among%20318%20ACA-compliant%20small%20group%20insurers
Each year, health insurers submit rate filings to state regulators outlining their expectations for the coming year and proposing premium changes for Affordable Care Act (ACA)-compliant plans. This analysis examines filings in the small group market, which covers plans offered to small businesses (g...