The 2026 Health Insurance Shock: How Small Businesses Can Offset Soaring Premiums

Posted on November 10th, 2025

Health insurance costs are rising again — and this time, the increases are hitting harder and faster than many businesses are prepared for. With the federal government choosing not to extend the enhanced ACA subsidies, both employers and employees are bracing for a substantial jump in premiums. For small and mid-sized businesses already operating on thin margins, these changes could create serious financial strain.

Across the country — and especially throughout rural America — companies are searching for ways to maintain competitive benefits without absorbing another massive cost increase. Unfortunately, many business owners are facing difficult decisions such as reducing coverage, shifting more cost to employees, or cutting benefits entirely.

At WolfpackHR, we are seeing this challenge every single day in the organizations we support. But we’re also seeing something else:

There are solutions that can significantly offset these premium spikes at no additional cost to the employer — and in many cases, actually reduce monthly benefit costs while expanding employee access to essential healthcare.

If your business is preparing for renewal or if you’re a leader concerned about rising premiums, this guide breaks down what’s happening, why 2025 is different, and how employers can protect their teams and their bottom line.

Why Health Insurance Premiums Are Skyrocketing in 2026

Premium increases aren’t new — but what we’re seeing for 2025 is unprecedented. Many major carriers have already signaled double-digit increases, with some small-group plans projecting hikes between 12% and 24%.

Three major factors are driving this:

1. ACA Subsidies Are Ending (at least for now)

During the pandemic, the federal government expanded ACA premium tax credits and subsidies, making plans more affordable. Those enhanced subsidies are now expiring, which means:

• Higher individual premiums
• Increased marketplace volatility
• More employees declining employer plans
• More pressure on employers to compensate through richer benefits

2. Medical Inflation Is Outpacing Economic Inflation

The cost of medical services, prescription drugs, and hospital care continues to rise faster than standard inflation. Carriers are passing those costs directly to employers.

3. Rural Healthcare Systems Are Collapsing

More than 600 rural hospitals are at risk of closure nationwide due to:

• Medicaid reimbursement cuts
• Staffing shortages
• Declining patient volume
• Increased operational costs

In states like South Dakota, Wyoming, Iowa, and Nebraska, clinic shutdowns have already begun. When local clinics close, remaining hospitals become strained — and insurance carriers increase premiums to offset the risk.

What Rising Premiums Mean for Employers — Especially Small Businesses

When premiums jump 15–25%, employers face a difficult question:

Do we absorb the increase or pass the cost along to our employees?

For many small businesses (5–100 employees), neither option is sustainable.

The Problems Employers Are Experiencing Right Now

• Rising premiums erode profitability
• Employees decline coverage due to higher payroll deductions
• Difficulty recruiting and retaining talent
• Employees delay care, increasing long-term health risks
• Greater burnout, absenteeism, and turnover

And in industries like construction, trades, manufacturing, hospitality, and home services — where margins are already tight — these increases can be devastating.

This means your employees may be paying more but still struggling to access basic care.

Employees Are Feeling the Pressure Too

Workers are already stretched thin. When the government ends subsidies and premiums rise, employees experience:

• Higher paycheck deductions
• Larger deductibles
• Higher out-of-pocket costs
• Less access to local physicians
• Greater medical debt
• Reduced engagement and productivity

Many rural workers now face 45 minutes to over 2 hours of travel just to see a doctor. When local clinics shut down, “access to care” becomes more about geography than insurance coverage.

That’s why innovative solutions are no longer optional — they’re essential.

Employers Need Creative Strategies — But They Must Also Protect Their People

The traditional approach of “renewing and hoping for the best” won’t work in 2025. Business owners must explore alternative, complementary, and supplemental benefits that reduce costs without sacrificing coverage.

This is where WolfpackHR’s solutions make a measurable difference.

✅ WolfpackHR Has No-Cost Solutions That Can Offset Rising Premiums and Expand Access to Care

WolfpackHR works with a portfolio of vetted vendors who specialize in innovative, zero-cost benefit enhancements. These programs can be added to your existing benefits package with:

• No additional cost to the employer
• No additional cost to the employees
• No disruption to your current plan
• No administrative burden
• Immediate improvements in healthcare access

And the best part?

These solutions can often offset the very premium increases employers are worried about.

Depending on your headcount, many businesses save anywhere from $4,000 to $20,000 per month, freeing up cash flow while strengthening employee benefits.

✅ Here’s What Employers Can Offer — at No Additional Cost

1. Unlimited Telehealth With No Copays

Employees gain access to:

• 24/7/365 telemedicine
• Board-certified physicians
• Mental health clinicians
• Virtual urgent care
• Zero copays
• Zero deductibles

For employees in rural areas, this is a lifeline.

2. Free Prescription Drugs

Many of our partners offer thousands of common prescriptions completely free or significantly reduced.

This eliminates one of the largest pain points for employees and families.

3. Enhanced Preventative Care

Employees receive more proactive care options without the delays, travel, or costs associated with traditional providers.

4. Solutions That Reduce Employer Payroll Taxes

Some programs qualify for tax-advantaged structures that:

• Lower employer FICA costs
• Increase employee take-home pay
• Reduce the employer’s benefit burden

5. Expanded Access to Care in Rural Communities

As rural clinics and hospitals continue to close, virtual-first benefits help bridge the gap between employees and the care they need.

Nobody should have to drive two hours for a medication refill or simple doctor’s visit.

These solutions solve that instantly.

✅ How These Programs Offset Premium Increases

Many employers are shocked when they realize how much they can save.

Here’s how the math works:

• Rising premiums increase costs by thousands
• Complementary solutions reduce taxable wages
• Companies save on payroll-related taxes
• Employees get better benefits
• Employers redirect those savings to offset premium spikes

Even small teams can save thousands per month.

And importantly:

Employers pay us nothing.

Employees pay us nothing.

We are compensated on the backend — just like your insurance broker.

This removes all financial risk for the business.

✅ Why Business Owners Are Turning to WolfpackHR Right Now

As a fractional HR, compliance, and cost-saving consulting firm serving South Dakota, the Black Hills, Wyoming, and surrounding regions, WolfpackHR brings:

• Deep knowledge of ACA compliance
• Expertise in high-cost rural markets
• Partnerships aligned with medical inflation trends
• Solutions used by contractors, hospitality groups, manufacturers, and trades businesses
• A no-cost, no-obligation approach
• A trusted local presence in the community
• A proven track record in reducing benefit costs

We’re also small-business owners ourselves — we understand the stakes.

✅ Who Benefits the Most From These Solutions?

These no-cost benefit tools are ideal for:

• Construction companies
• Electrical, plumbing, HVAC, and trades
• Manufacturing and fabrication shops
• Hospitality groups and hotel management
• Rural employers with limited access to care
• Businesses with 5–100 employees
• Employers facing double-digit premium increases
• Organizations looking to expand benefits without raising costs

If your business fits any of these categories, you are exactly the employer these programs were designed for.

✅ What Employers Should Do Before Their 2026 Renewal

To protect your business and your employees:

1. Do not renew blindly — evaluate alternatives and offsets.

This year more than ever, renewal deserves scrutiny.

2. Explore cost-saving programs that create immediate tax advantages.

These programs put money back in the business.

3. Expand employee access to healthcare without increasing payroll deductions.

Saying “we can’t afford benefits” is no longer acceptable.

4. Partner with experts who specialize in high-cost markets.

This ensures your benefits strategy is optimized, compliant, and competitive.

WolfpackHR is uniquely positioned to support all four.

✅ WolfpackHR’s No-Cost Benefits Audit Can Show You Exactly How Much You Could Save

Our free audit identifies:

• Where premium increases will hit hardest
• Opportunities to offset or eliminate the increases
• Tax savings your business is currently missing
• Benefit enhancements that cost nothing to implement
• Gaps in healthcare access for your employees
• No-cost add-ons that improve attraction and retention

This audit alone can save a business thousands per employee per year.

And again — you never pay us a dime.

Final Thoughts: Rising Premiums Don’t Have to Break Businesses or Harm Employees

2026 will be a tough benefits year — but it doesn’t need to be devastating.

Yes, premiums are rising.
Yes, ACA subsidies are ending.
Yes, rural healthcare access is declining.

But employers do not have to absorb these costs or compromise on coverage.

With the right innovative solutions, you can:

✅ Offset premium increases
✅ Reduce payroll taxes
✅ Expand employee benefits
✅ Improve access to care
✅ Strengthen retention
✅ Protect profitability

All at no additional cost to your business.

The companies that take action now — before renewal season — will be the ones that weather this storm successfully.

Ready to See How Much You Could Save?

WolfpackHR is currently offering a free, no-cost benefits audit for local businesses in South Dakota, Wyoming, Nebraska, and the greater Midwest. It takes just 15 minutes and may help you save thousands each month.

➡️ Contact WolfpackHR today to explore cost-saving benefit solutions that protect your business and your employees.

Let’s strengthen your team, your bottom line, and your future — together as a Pack.