In Plain Benefits: Plugging the 11% Leak.

TJ Bullock | May 27th, 2026

Your 2026 health insurance renewal just landed on your desk, and it’s a cool 11% increase. On paper, it looks like a "cost of doing business." In reality? It’s a leak in your company’s hull, slowly draining the capital you need to grow, hire, and dominate your industry. Most businesses in the 25–300 employee range treat this like a fixed cost, but we’re here to tell you that the default setting is broken.

1️⃣ THE 11% DEFAULT TRAP
Most employers are stuck in a "fully insured" loop. Every year, the carrier hands you a double-digit increase, you grumble, maybe raise the deductible a bit to shave off 2%, and then sign on the dotted line. It’s the path of least resistance, but it’s also the most expensive way to buy insurance because you’re paying for the carrier’s profit margin and every other "unhealthy" group in their pool.

• Translation: You are subsidizing everyone else’s bad claims while getting zero reward for your own good ones.
• Translation: Renewing "as-is" isn't a strategy; it's a donation to the insurance company's quarterly earnings report.

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2️⃣ PATCHING THE HOLE WITH ALTERNATIVE FUNDING
If your ship is leaking, you don't just keep bailing water; you fix the hole. For businesses with 25–300 employees, the "fix" often lies in Level-Funding or Captives. These aren't scary, complex Wall Street instruments. They are simply different ways to pay for the exact same care. Instead of giving the carrier a flat fee and hoping for the best, you pay for what you actually use and keep the leftovers.

• Translation: Level-funding gives you a "best of both worlds" approach: predictable monthly payments with the chance for a refund if your team stays healthy.
• Translation: Captives allow you to join forces with other mid-sized companies to buy stop-loss insurance at "wholesale" rates rather than "retail."

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3️⃣ THE 5-YEAR COMPOUNDING EFFECT
A recent May 2026 study highlights that the real magic isn't in the first year: it's in the compounding savings. When you switch from a fully insured model to a transparent funding model, you stop the "11% every year" cycle. Over five years, the difference between a traditional renewal and a managed, alternative-funded plan can be the difference between a stagnant budget and a six-figure surplus.

• Translation: It's not just about saving money this year; it’s about resetting your baseline so you never hit that 11% spike again.
• Translation: Claims data is power. Once you see where the money is going, you can actually manage it.

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4️⃣ IT’S NOT YOUR PLAN, IT’S THE BILL
We’ve said it before and we’ll say it until the cows come home: "It’s not your plan, it’s how you’re paying for it." You can have the same networks, the same doctors, and the same benefits while changing the plumbing underneath. At Bullock & Associates, we specialize in the plumbing. As a proud UBA Partner Firm, we have the national leverage to find these solutions for businesses that are tired of the status quo.

• Translation: You don't have to slash benefits or hike copays to save money.
• Translation: Changing the funding model is the single most effective way to "make complicated simple."

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Stop bailing water. If your 2026 renewal feels like a leak you can't ignore, it’s time to look at the hull. There are better ways to fund your benefits that put the control: and the cash: back in your hands.

Making complicated simple.

#UBA #NABIP #employeebenefits #HealthInsurance #LevelFunding #InsuranceCaptives #SmallBusinessStrategy

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