If rising health insurance costs have you thinking ahead to renewal season, you’re not alone. Many employers are preparing for premium increases in the 9%–11% range in 2026. And after several years of steady increases, businesses are feeling the pressure. The challenge is familiar. How do you continue offering competitive benefits without putting more strain on your budget or your employees?
That’s where CaliforniaChoice continues to make a difference. The program was built to help balance cost control with employee choice, giving you more flexibility when premium pressures rise.
How CaliforniaChoice helps you respond to rising premiums
Why health insurance premiums keep rising
Health care costs continue increasing for several reasons:
- Growing use of specialty medications, including GLP-1 drugs
- Higher cancer treatment costs
- Medical inflation
- Changes in carrier risk pools
- Rising administrative and labor expenses across the health care system
These trends are largely outside employers’ control but how you respond to them doesn’t have to be.
Your options when health insurance costs rise at renewal
When rates rise, many businesses feel stuck between absorbing higher costs or passing them on to employees. But renewal doesn’t have to be an all-or-nothing decision. Working with your broker, you can evaluate strategies such as:
- Reviewing available carrier and plan options
- Exploring different provider networks
- Reassessing contribution strategies
- Considering HMO, PPO, or HSA-compatible plans
- Adding or adjusting coverage tiers
The goal isn’t simply reducing costs. It’s finding the right balance between affordability, employee experience, and long-term sustainability.
How CaliforniaChoice helps control health insurance costs
One of the biggest advantages of CaliforniaChoice is flexibility. Rather than forcing your business into a one-plan-fits-all approach, it gives you tools to manage rising costs while still offering employees meaningful choices. You maintain control of your contribution, and employees choose the plan that best fits their needs.
With CaliforniaChoice, you have:
- More budget predictability for your business
- Greater employee choice
- Less pressure to compromise on benefits
If an employee chooses a plan that costs more than your contribution, they simply pay the difference. That flexibility becomes especially valuable during years when premiums increase.
More health plan options, simpler administration
Your employees continue getting access to 100+ coverage options from seven health plans, including:
- Anthem Blue Cross
- Health Net
- Kaiser Permanente
- Sharp Health Plan
- Sutter Health Plan
- UnitedHealthcare
- Western Health Advantage
That means employees can continue selecting:
- HMO or PPO coverage
- HSA-compatible plans
- Different provider networks
- Coverage that fits their personal health care and financial needs
And even with all those options, administration stays simple with:
- One enrollment process
- One monthly bill
- One online platform to manage benefits
So while employees gain flexibility, employers avoid added administrative headaches.
Your Opportunities at Renewal
Higher premiums may be part of today’s benefits landscape, but they don’t have to dictate your strategy. Your upcoming CaliforniaChoice renewal is a chance to revisit your contribution approach, evaluate plan options, and make sure your benefits program continues supporting both your employees and your business goals.
If renewal questions are already on your mind, your broker can help you explore the options available through CaliforniaChoice.