Insurers Want to Hike Small Businesses’ Premiums by 14% Next Year: KFF

A new KFF analysis of insurer rate filings found that small businesses could face a median 14% increase in health insurance premiums in 2027, with most insurers requesting hikes between 10% and 20% and some seeking increases above 30%. Insurers cite rising medical costs, higher prescription drug spending—particularly for GLP-1 medications—and increased healthcare utilization as key drivers. The report warns that escalating premiums could push more small employers toward lower-cost plans with fewer consumer protections or away from offering traditional health coverage altogether.

The findings underscore the growing financial pressures facing small businesses as healthcare costs continue to outpace inflation. Insurance providers, benefits consultants, financial institutions, healthcare organizations and employers have opportunities to help businesses manage rising costs by exploring alternative coverage options, employee wellness strategies and cost-saving benefit solutions.