Don’t Let Rising Healthcare Costs Eat Your 2026 Budget
- C. B. Wood Financial
- Sep 24
- 2 min read
For many companies, health insurance renewals arrive with a sense of dread—often a double-digit increase that feels more like a fixed cost than a negotiable line item. But treating renewals as a routine HR task can leave significant money on the table. Rising healthcare costs are one of the fastest-growing expenses for employers, and without a proactive strategy, they can quietly erode your 2026 budget.
Why Renewal Is More Than HR’s Job
While HR often takes the lead on employee benefits, healthcare is ultimately one of the top five expenses for most organizations. That makes it a strategic financial decision—one that belongs at the CFO’s table just as much as HR’s. Viewing renewals through a financial lens shifts the focus from “what’s the increase this year?” to “how can we better manage our healthcare dollars long term?”
The Case for Self-Funding
One of the most effective strategies employers are turning to is self-funded health plans. Instead of paying an insurance carrier to take on all the risk (and locking into their annual increases), self-funding allows employers to:
Control Costs with Data – Access to claims data reveals exactly where dollars are being spent, enabling smarter strategies around pharmacy, imaging, and chronic conditions.
Eliminate Hidden Margin – Carriers often build profit and risk charges into renewals. Self-funding removes much of that padding.
Design Benefits That Retain Talent – With greater flexibility, employers can add high-value, low-cost benefits (like free prescriptions or telemedicine) without driving up premiums.
Stabilize Long-Term Budgets – With the right stop-loss protection in place, employers can smooth out volatility and avoid the shock of unpredictable renewal hikes.
Renewal as a Strategic Advantage
Companies that wait until renewal season to react are stuck with limited options. Those that approach healthcare as a financial strategy year-round can turn their benefit plan into a competitive advantage—reducing costs, improving benefits, and protecting the bottom line.
As you prepare for your 2026 budget, don’t let healthcare costs eat away at growth initiatives. Partner with experts who can help you explore self-funded options and design a plan that works for both your employees and your financials.
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