TJ Bullock | August 6th, 2026
Meet Lisa. She owns a growing business, opens her renewal, and sees an 11% increase staring back at her. Her first thought is the same one a lot of employers have: cut benefits, raise deductibles, and hope the numbers work. But that move usually creates a new problem for employees without solving the real one.
Here's what you need to know.
1️⃣ The Renewal Shock Trap
Traditional fully insured plans pass market increases straight through to your business. When overall claims go up, your premium usually goes up too.
Raising deductibles or copays may lower your cost on paper, but it pushes more of the burden onto employees and leaves the funding problem untouched.
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2️⃣ It's Not the Plan, It's How You're Paying for It
A smarter question is whether the issue is really the plan design or the funding method behind it.
Alternative funding strategies like level funding can help employers pay for actual claims and fixed costs instead of overpaying for carrier margin built into a traditional model.
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3️⃣ Why Level Funding Gets Attention
Level funding gives employers more predictability while creating room for savings when claims run better than expected.
In a good claims year, unused claim dollars may come back as surplus or savings. That is a very different outcome than a fully insured plan, where the carrier keeps the difference.
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IPB Takeaway
Headlines about premium increases get attention, but the bigger issue is usually underneath the surface. Healthcare policy changes, carrier pricing, and funding mechanics have more impact on long-term cost than the renewal headline itself.
That is why our philosophy stays the same: it's not your plan, it's how you're paying for it. When employers understand the structure behind their benefits, they can make better decisions without automatically cutting coverage.
Making complicated simple.
#UBA #NABIP #employeebenefits #smallbusinesshealthinsurance #levelfunding #alternativefunding
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