PR Newswire·Sep 16, 2026, 9:00 AM ET

Survey: 54% of Small- to Mid-Sized Businesses Report Double-Digit Health Plan Premium Increases for 2027

Over half of small- to mid-sized employers face group health premium increases of 10% or more for 2027, with 54% seeing double-digit hikes.
73% of businesses are considering dropping traditional health insurance benefits in 2027, citing cost as the primary motivator.
80% of employers facing rate hikes were surprised by the size of their premium increases for next year, including 44% who were "very surprised."
85% of employers worry they will be unable to afford group health insurance benefits within three years.
72% of businesses express at least one point of dissatisfaction with current coverage, with high premiums (29%) being the most common issue.
79% of employers find administering group health plans burdensome, with 41% calling it a "huge burden."
58% of businesses are already pursuing alternative arrangements, such as level-funded plans or shifting to CHOICE Arrangements.
Familiarity with CHOICE Arrangements (formerly ICHRA) has increased to 57% among small- to mid-sized employers, up from 46% last year.
The data is based on a survey of over 500 business owners and managers conducted between August 24-28, 2026, with a margin of error of +/- 4%.