Your health insurance renewal increase: what's normal, and what's behind it

What’s a normal renewal increase in 2026?

The best public yardstick is KFF’s annual survey of employers. In 2025:

• Average premiums rose 5% for single coverage and 6% for family coverage.
• The average family premium reached $26,993 a year. Workers paid $6,850 of it.
• The average single premium was $9,325.

KFF also reported that insurers were asking for double-digit increases in the small-group market for the year ahead.

If your increase is well above those numbers, that’s worth understanding. It doesn’t mean you’re being overcharged. It means something specific to your group or your plan is probably in play.

What actually drives the increase

• Market trend. Medical and drug prices go up for everyone. You can’t control this part.
• Your census. An older group, more family enrollment, or more people on the plan all raise the bill.
• Plan changes. Deductibles, copays, and drug tiers can change at renewal. Sometimes the increase is softened by quietly cutting benefits.
• Network changes. A different network can move the price either way.
• Your own claims. Over 50 employees, a few large claims can move the renewal a lot.

Each one points to a different response. That’s why the first step is figuring out which ones are in play.

What a renewal letter shows, and what it hides

A renewal letter usually shows your current rates, your new rates, and the effective date. It rarely shows why.

In Texas, if you’re a small employer (2 to 50 employees), your insurer has to give you written notice at least 60 days before a rate increase takes effect. That notice includes a table with your current premium, the new premium, and the percentage change.

What you usually won’t see without asking: how much came from trend versus your group, whether plan benefits changed, and what your claims looked like. Over 50 employees in Texas, you can ask for that claims history in writing. Here’s how to get your claims report.

Ways to lower the renewal before you cut benefits

Start with what to check, not what to switch.

1. Confirm the plan didn’t change. Compare this year’s plan summary to last year’s, line by line.
2. Check the census. Make sure the insurer priced the right people, ages, and tiers.
3. Ask what drove the number. Trend, census, plan changes, or claims. Ask in writing.
4. Get your claims report if you’re over 50, and see whether the big claims are likely to repeat.
5. Look at your contribution split. How you split cost by tier changes what the company pays and who enrolls.
6. Then look at options. Plan design, a different network, or a different funding type. See level funded vs fully insured.

Sometimes the answer is that the increase is fair and you keep what you have. That’s still worth knowing before you sign.

What's the average health insurance renewal increase?

KFF’s 2025 survey found average employer premiums rose 5% for single coverage and 6% for family coverage. KFF also reported insurers were asking for double-digit increases in the small-group market for the year ahead. Treat any average as context, not a target.

What will employer health insurance increases be in 2027?

I don’t have a published number to give you yet. When a credible survey publishes one, I’ll add it here. Your own increase will depend more on your group than on any national figure.

Can I negotiate a group health insurance renewal?

Sometimes. You negotiate better when you know what drove the number. If it’s mostly your own claims, the claims report tells you whether those claims are likely to repeat.

Should I just raise the deductible?

It’s one lever. It shifts cost to whoever gets sick, and it doesn’t fix a census shift or a pricing problem. Check what drove the increase first.