Group insurance is costing you more than you think

Take Command survey reveals the economic impact of health insurance and why employee experience matters

Employee experience with health insurance can drive—or drain—a company’s bottom line. Take Command’s 2026 State of Employee Health Benefits Survey shows how group insurance inhibits recruitment and retention and stifles budget predictability, while HRAs can create a clear path to employee satisfaction and financial gain.

This is blog three of six in our series. Read the first two installments here:

1. The future of health benefits is choice

2. New data shows employees are at their health insurance breaking point

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Download key survey findings

Health benefits experience can lead to job lock

Let’s start with a staggering finding from our 2026 State of Employee Health Benefits Survey.

51.5% of surveyed employees stayed in a job primarily because they did not want to lose their health insurance. Think about that. More than half of employees will stay at a job just so they don’t lose insurance.

51.5% of employees stayed at a job just so they wouldn’t lose health insurance.

When employees stay with their employer out of fear rather than dedication, productivity drops and the work environment suffers. The economic term for this phenomenon is job lock. It goes beyond an HR headache; it’s an economic drag that costs businesses discretionary effort.

Benefits drive job decisions: the impact of health insurance on hiring

Almost all of the 1,000 surveyed employees said that health benefits influence their decision of whether to accept a job.

94% of employees say that benefits drive job decisions.

All employers want to recruit top talent. It doesn’t matter whether you’re running a small business, mid-market company, or corporate enterprise—you need good people. But more than half of employees (56.5%) would refuse a job that didn’t offer good benefits.

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Download key survey findings

The negative economic impact of group health insurance

There are a lot of problems with group health insurance.

Just to name a few:

• Astronomical rate hikes have become the norm for group health insurance carriers.¹

• Those rate hikes are unpredictable, so it’s impossible for a business to budget or forecast accurately.

• One black swan medical event in a 50-person company can spike renewals by 30%+ and shatter the annual budget.²

In addition to the stress of budgeting and forecasting, group insurance rate hikes put a heavy mental load on HR, finance, and the C-suite when strategizing for business success.

Affordable health insurance is key, and HRAs deliver

In addition to giving employees choice, HRAs are more affordable in states across the country. A key finding from the Take Command’s 2026 State of Employee Health Benefits Survey is that employees are worried about the rising costs of healthcare and looking for affordable options.

78% of employees are worried about healthcare costs

Going from economic uncertainty to 100% budget predictability

Employers aren’t just sitting back and accepting the group health status quo. There has been a tremendous increase in HRA adoption,³ signaling that employers are seeing the benefits of cost savings and budget predictability.

Moving to a defined contribution model such as an ICHRA eliminates budget volatility by transferring medical risk from the employer to the individual marketplace. Instead of the risk being concentrated among the company’s employees, it is diluted across 23 million+ participants in the ACA or state exchanges, insulating the business from catastrophic claims

Answering the risk of job lock

Health reimbursement arrangements solve the job lock issue in two ways. First, HRAs answer employee preference to have full control over their insurance decisions. Second, HRAs are portable, so if an employer offers an HRA, the employee can take it with them if they leave (the employee takes over payments), putting zero pressure to stay at a job that isn’t a good fit.

Removing the hiring barrier

This is another key value of HRAs. Any employer, no matter size or geographic distribution, can offer an HRA to employees. Small businesses often use QSEHRA to offer health benefits for the first time, and mid-market or enterprise companies love ICHRA for the cost savings, flexibility, and budget control.

ICHRA also allows start ups or scaling businesses to punch above their weight in terms of health insurance. They can offer an ICHRA that’s comparable to a global company, while giving employees the choice they want and keeping their P&L in check.

HRA affordability, legislation soars in many states

While HRAs are available in every state, there are some areas where they are considerably more affordable than group insurance. States are also beginning to pursue legislation that supports QSEHRA and ICRHA.

Ohio employers save up to 85% with a Take Command HRA

In addition to massive savings, Ohio legislators are considering House Bill 133, which is a proposed state tax credit. Under this bill, a $400 tax credit per employee covered will be available to employers who offer ICHRAs,⁴ making it an even smarter choice for Buckeye businesses.

Virginia’s reinsurance program reduces employee costs by 15–20%

The Commonwealth Health Reinsurance Program is a state-funded initiative with the purpose of directly reducing costs for consumers. It is estimated that CHRP will reduce average monthly premiums by 15% to 20% for employees.⁵  

Pennsylvania offers employees affordability and choice

Pennsylvania has one of the most stable and competitive individual health insurance markets in the country, making HRAs an affordable option. Pennsylvania workers also have access to more than 400 health plans on the state marketplace, giving them a lot of choice.

HRAs give brokers a new strategy

Brokers know the changing healthcare landscape more than anyone. Give your clients an option that outperforms group, and give prospects fresh ideas and proof of concept.

ICHRA for brokers        

Download key survey findings

Keep reading

Industry spotlight: economic impact of health insurance for manufacturing and healthcare

Almost every manufacturing employee (98%) said that health benefits were somewhat or extremely important when deciding whether to leave a company, while 58% would not take a new job that offered a poor benefits package.

Almost half (46%) of healthcare employees said that concerns about coverage impact their mental health. One nurse said they were worried about how increasing costs would affect their patients, adding to the burden.

Contact Take Command to learn about HRAs

Health insurance has become an economic lever, and companies that continue to force one-size-fits-all group plans are paying the cost. 

Contact Take Command HRA experts to talk about the benefits of an HRA or request a demo.

References: 

1. https://www.kff.org/health-costs/annual-family-premiums-for-employer-coverage-rise-6-in-2025-nearing-27000-with-workers-paying-6850-toward-premiums-out-of-their-paychecks/
2. Sun Life High-Cost Claims Report
3. https://www.hracouncil.org/report
4. https://ohiohouse.gov/news/republican/representative-craig-introduces-legislation-to-create-tax-credit-for-small-business-employers-128105
5. https://www.quiverquant.com/news/Press+Release%3A+SCC+Reports+Proposed+Health+Insurance+Premiums+for+Virginia+Plan+Year+2026