As we approach 2026, many Americans are worried about rising health insurance premiums. Health policy nonprofit KFF reports that premiums have surged by 24% over the last five years. This year alone, those purchasing through the Affordable Care Act Marketplace are seeing costs increase by 26%. They’re also facing fewer tax credits during this year’s open enrollment.
This issue affects not just individual policyholders but also those receiving insurance through employers. KFF indicates that 154 million people—including 3.1 million in Minnesota—get their healthcare via their jobs, and their premiums are rising similarly.
Several factors drive these increases, but a key contributor is the high cost of healthcare. KFF’s analysis highlights that pharmaceutical companies and for-profit insurers play significant roles in pushing up prices. Moreover, the more an employer’s insurance plan is used, the higher the premium can climb.
In Cook County, public employers are feeling the pinch too. Allison Plummer, HR Director for Cook County, revealed that health insurance costs for county employees will rise by 11.8% in 2026. She noted that this was better than expected, given broader market trends.
On the other hand, Cook County Schools Superintendent Chris Lindholm shared that staff premiums have spiked by 30%. He noted that this means staff members could face an extra burden of $5,000 to $6,000 annually, impacting their take-home pay—even if they received a salary increase.
Interestingly, Grand Marais has managed to avoid any changes in health insurance costs this year. City Administrator Mike Roth mentioned that last year, the city also experienced a decrease in premiums, which is rare amid the general trend.
Unlike private companies, public employers must work collaboratively to manage benefits. Plummer, Lindholm, and Roth consult with employee committees and unions to navigate the intricacies of selecting insurance plans. This collaboration is essential as they choose among various options while balancing costs and employee needs.
For instance, Roth explained how a decision in 2018 to switch providers saved Grand Marais a staggering 53% the following year after an initial 29.9% expense increase. Such decisions illustrate the importance of continually assessing insurance options.
Amid these challenges, benefits remain crucial for attracting and retaining employees. For instance, Cook County covers 80% of premium costs, but employees still feel the strain, especially as dental and vision expenses fall entirely on them.
Recent data from KFF underscores that health care spending is hitting record highs, with health insurance premiums following suit. Plummer shared that the cooperative advises employers to prepare for annual increases of 12-15%.
For educators, Lindholm noted a troubling trend: many districts have shifted from offering comprehensive health insurance to high-deductible plans that often require employees to chip in. He indicated that without policy changes at the state or federal level, this trend will likely continue, impacting both budgets and program availability in schools.
As public organizations grapple with these rising costs, they often face legal and union constraints when altering benefits. Plummer expressed the need to adhere to state and federal requirements, which can significantly shape negotiations.
Ultimately, while rising premiums have drawn much attention, Lindholm believes this trend has been longstanding. Many districts are struggling to offer competitive benefits, exacerbated by stagnant funding amidst rising costs.
These developments emphasize the need for continued awareness and adaptability in managing health insurance in public sectors. Listening to experts and engaging with community feedback can be valuable as organizations navigate these complex challenges.
For further insights, you can explore the KFF report.
