Employers aren’t exploring alternative health plans out of curiosity. Rising healthcare costs continue to strain budgets, and traditional models leave little room to manage that pressure. Employers face a 9% increase in healthcare costs this year, forcing many organizations to reevaluate whether their current approach is sustainable.
Alternative health plan designs are seen as a way to mitigate cost trends without resorting to blunt cost-cutting measures that can disrupt workforce satisfaction. In fact, nearly one-quarter of U.S. employers are expected to offer an alternative health plan this year, with another 36% actively considering adoption in 2027 or 2028.
