2027 Group Health Renewal Increase? Options for Washington Employers

By Brandon Hoobler | 09/18/2026

Last reviewed: October 16, 2026. Written by Brandon Hoobler, licensed Washington insurance broker.

A large 2027 renewal usually reflects rising medical and drug costs across Washington, plus changes in your own group, such as employee ages and enrollment. You also have real options to compare before your deadline. The earlier you start, the more of them stay open.

Key takeaways

Nine insurers have filed 2027 small employer rate requests with the Washington Office of the Insurance Commissioner (OIC). Requested averages range from 7.91% to 19.99%. All nine were still under review on October 16, 2026.
Requested rates are not final. For 2026, the OIC approved an average small group increase of 12.8%, higher than the 9.5% insurers requested.
Your renewal can differ from the market average because of employee ages, enrollment changes and plan changes. Level-funded plans also use your group’s health status in pricing.
Compare every option on the same census and the same contribution assumptions. Otherwise the comparison will mislead you.
For 2027, an HSA-qualified plan needs a deductible of at least $1,750 (self-only) or $3,500 (family). HSA contributions are capped at $4,500 or $9,000, per the IRS.
If you are an applicable large employer, check affordability before you raise employee costs. The IRS percentage for plan years beginning in 2027 is 10.22%.
Start 90 days before your effective date when you can. For a January 1, 2027 renewal, the 60-day mark is November 2, 2026.

Why 2027 renewals are up in Washington

What carriers filed with the OIC

Insurers that sell small employer plans (1 to 50 employees) in Washington file rate requests with the OIC. The OIC’s public rate search lists nine small employer requests for plans renewing on or after January 1, 2027.

When we checked on October 16, 2026, every request was marked “Under Review.” The OIC had not yet announced approved 2027 small group rates.

Insurer	2027 requested average
Asuris Northwest Health	17.86%
Kaiser Foundation Health Plan of the Northwest	7.91%
Kaiser Foundation Health Plan of Washington	8.09%
Kaiser Foundation Health Plan of Washington Options	12.39%
Premera Blue Cross	19.99%
Premera Blue Cross HMO	16.8%
Regence BlueCross BlueShield of Oregon	13.81%
Regence BlueShield	16.62%
UnitedHealthcare Insurance Company	19.87%

Seven of the nine requests are above 10%. Each figure is that insurer’s average across its small group plans. Your own renewal can land above or below it.

Approved numbers can differ from what insurers request. For 2026, nine insurers requested an average small group increase of 9.5%. After actuarial review, the OIC approved an average of 12.8%.

The table shows every filing so you can see the whole market. We quote Premera, Regence and Kaiser Permanente plans for Washington employers. For a broader look at premiums and who pays what, see our guide to group health insurance costs in Washington.

The national cost trend behind the filings

Washington is not alone. KFF reviewed preliminary 2027 small group filings from 295 insurers in all 50 states and Washington, D.C. The median proposed increase was 14%.

The median insurer estimate of medical trend (price plus use of services) was 10.8%. Insurers pointed to higher costs for hospital care, physician care and prescription drugs, plus more use of services.

KFF also found that some insurers expect their small group pools to cost more as healthier groups move to level-funded plans. That shift can push fully insured rates up for the groups that stay.

Employer plans nationally show the same pressure. In a survey of more than 1,800 U.S. employers, Mercer projected total health benefit cost per employee to rise 8.2% in 2027 after planned changes. Without changes, the projection was 11%. Mercer found that rising GLP-1 drug use accounts for a full percentage point of that growth.

Market trend versus your group’s own factors

The carrier’s filed increase is only part of your number. Separate it from the factors that belong to your group:

Age changes. The OIC lists the ages of covered members as a premium factor. A year of birthdays can move employees into higher rates.
Enrollment changes. New hires, departures, added spouses or children, and where employees live all change the total.
Plan changes. If your carrier retired your plan and moved you to a replacement, both benefits and price change.
Claims, for some groups. For fully insured small group plans, the OIC says rates are based on the total claims from all members. Level-funded plans work differently: KFF notes they use health status in rating and underwriting. If you have 51 or more employees, the OIC says most employers that size negotiate rates with their insurer.

Ask your carrier or broker to split the increase into these pieces. A renewal driven mostly by age and enrollment calls for different choices than one driven by the carrier’s base rate.

How to read your renewal line by line

Put last year’s rates next to the renewal. Then check each line:

Rates by tier or by age. Some renewals list a rate for each member by age. Others use tiers such as employee only, employee and spouse, employee and children, and family. Compare the same format year over year, and confirm the census the carrier used matches your current roster.
Plan changes. Look for a new plan name or ID, a higher deductible, out-of-pocket maximum or copay, or new prescription tiers. A “same plan” renewal can still carry benefit changes.
Network changes. Confirm the network name has not changed and that the clinics and hospitals your employees use are still in it. Our guide to in-network and out-of-network care explains why this matters.
Total monthly premium. Multiply each rate by enrollment and compare total cost, not just the headline percentage.
Contribution impact. Run the new rates through your current contribution formula. Show the change for the business and for employees in each tier.

Illustration (round numbers): Say an employee’s monthly contribution rises from $150 to $180. That is $30 a month, or $360 a year. On 24 paychecks it is $15 per check. On 26 paychecks it is about $13.85. Use your real payroll schedule when you share numbers with employees.

One caution: voluntary benefits such as accident or hospital coverage can help employees with out-of-pocket costs. They are separate products, though, and they do not lower your medical premium.

Options to compare

Each option below fits some employers and not others. Price them on the same census and the same contribution assumptions so the comparison is fair.

1. Change the plan design

Raise the deductible, coinsurance or copays to lower the premium. Our page on deductibles, copays and coinsurance covers how each one works.

Who it fits: groups where most employees use little care and value a smaller paycheck deduction.

Trade-off: employees who need care pay more when they get it. For reference, KFF found the average single deductible was $1,886 in 2025 for workers with a general deductible. Check the out-of-pocket maximum, not just the deductible.

2. Offer a second plan or a buy-up option

Keep a richer plan and add a lower-cost one. Or set your contribution on a base plan and let employees pay the difference to buy up.

Who it fits: mixed workforces, where some employees want low premiums and others want low deductibles.

Trade-off: employees who expect more care tend to pick the richer plan, which can raise its price at later renewals. More choices also mean more employee education. Ask the carrier how its participation rules apply when you offer more than one plan.

3. Move to an HSA-qualified plan

An HSA-qualified high deductible health plan (HDHP) lets enrolled employees put pre-tax money into a health savings account. The IRS published these 2027 limits in Rev. Proc. 2026-24:

2027 IRS limit	Self-only	Family
HSA contribution limit	$4,500	$9,000
HDHP minimum annual deductible	$1,750	$3,500
HDHP out-of-pocket maximum	$8,700	$17,400

Who it fits: employees who use little routine care and can save, plus employers willing to fund part of the deductible through the HSA.

Trade-off: employees pay more of their care costs until they meet the deductible. That can be hard on lower-paid staff. See HRA, HSA and pre-tax plans for setup details, and confirm tax questions with your CPA.

One more 2027 figure: the IRS limit for an excepted benefit HRA is $2,250 for plan years beginning in 2027. Our excepted benefit HRA page explains what it can and cannot pay for.

4. Change how you contribute

You can change the percentage you pay, switch to a flat dollar amount, or tie your contribution to the lowest-cost plan. You can also contribute differently for employees and dependents.

Check the carrier’s minimums first. Premera’s 2027 Washington small group application is one example. For groups of 4 to 50 employees, it requires an employer contribution of at least 50% for eligible employees and 75% employee participation. Groups of 1 to 3 employees need a 100% employer contribution and 100% participation.

The same form says individual coverage is not a valid waiver. Kaiser Permanente and Regence set their own rules, so confirm them before you change anything.

Some groups cannot meet a carrier’s contribution or participation rules. Federal rules let the insurer limit those groups to an annual enrollment window, November 15 through December 15.

Who it fits: employers with a fixed budget who can accept some employee pushback.

Trade-off: higher employee costs can lead healthy employees to waive, which can put participation at risk. Applicable large employers also need to recheck affordability (see below).

5. Consider level funding

KFF describes level-funded plans as a small self-funded piece combined with stop-loss insurance that limits the employer’s risk. Your group’s own claims and health status matter far more than in a fully insured small group plan.

In 2025, 37% of covered workers at firms with 10 to 199 workers were in a level-funded plan, according to KFF.

Who it fits: groups with stable enrollment and relatively low claims that are comfortable with a contract that has more moving parts.

Trade-off: these plans use health status in rating and underwriting. A group with large claims may get a poor quote or a hard renewal. Read the stop-loss, runout, termination and surplus terms closely. Our comparison of level-funded vs fully insured plans in Washington walks through each one.

6. Consider an ICHRA

With an individual coverage HRA (ICHRA), you give employees a set tax-free allowance and they buy their own individual health plan. HealthCare.gov now calls these CHOICE Arrangements. Our ICHRA page covers how they work in Washington.

Key rules from HealthCare.gov:

Employees must have individual coverage (or Medicare) to use the funds.
You cannot offer the same class of employees a choice between your group plan and an ICHRA.
Current employees must get written notice 90 days before the plan year starts. For a January 1, 2027 start, that date was October 3, 2026.

Who it fits: employers who want a fixed, predictable budget, or who have employees in many locations.

Trade-off: employees take on individual market prices. The OIC approved an average 22.2% increase for Washington’s 2027 individual market, so price the actual plans employees would buy. Tax rules apply, so confirm the setup with your CPA or attorney.

7. Shop carriers and networks

The 2027 filings show how far apart carriers can be. Kaiser Foundation Health Plan of Washington requested 8.09%, while Premera Blue Cross requested 19.99%. A carrier with a lower average request may still quote your group higher, so get actual quotes.

Who it fits: groups whose employees are not tied to one doctor or hospital system.

Trade-off: a network change can disrupt care. Before you switch, check employees’ doctors, ongoing treatment, prescriptions and prior authorizations. A carrier change also takes paperwork, so build that time into your schedule.

8. If your plan is through an association

Some Washington employers renew through an association plan, such as the BIAW Health Insurance Program or AWB HealthChoice. These plans have their own eligibility, membership and renewal rules, and they aren’t subject to Washington’s small-group rating rules. Compare the renewal against small-group, level-funded and ICHRA quotes on the same census.

Who it fits: association members whose renewal came in higher than the business can absorb.

Trade-off: an association plan can bundle other coverage, such as vision or life insurance, so price the whole package, and have the replacement approved before you give notice. AWB HealthChoice, for example, renews every December 1 and requires 30 days’ notice to cancel. See BIAW health insurance alternatives and how to compare a 20% renewal side by side.

Washington Insurance Brokers is an independent broker, not affiliated with or endorsed by BIAW, its local associations, its administrators, or its insurers. We’re an appointed AWB HealthChoice producer, so we can quote it for eligible members, but we aren’t owned by or endorsed by the Association of Washington Business.

Your renewal timeline: 90, 60 and 30 days out

Count back from your renewal effective date. Here are the checkpoints for three common dates:

Checkpoint	January 1, 2027 renewal	February 1, 2027 renewal	March 1, 2027 renewal
90 days before	October 3, 2026	November 3, 2026	December 1, 2026
60 days before	November 2, 2026	December 3, 2026	December 31, 2026
30 days before	December 2, 2026	January 2, 2027	January 30, 2027

If your renewal is January 1, 2027, the 90-day mark has passed. Do the 90-day and 60-day steps together now.

90 days before

Get the full renewal, including rate exhibits and any plan change notices.
Update your census and send it to your broker with the items listed below.
Decide which options you want priced, and set a budget range.
If you are weighing an ICHRA, this is the last point to give current employees notice.

60 days before

Review side-by-side quotes built on the same census and contribution.
Check network fit for key doctors and prescriptions.
If you are an applicable large employer, run the affordability check on any new contribution.
Pick a direction and confirm the carrier’s paperwork deadline.

30 days before

Sign the renewal or new group application and submit the required documents.
Update payroll deductions for the first pay period of the new plan year.
Hold employee meetings and open enrollment. Our open enrollment communication plan lays out what to send and when.
Collect enrollments and waivers, and confirm participation meets the carrier’s minimum.

Carrier deadlines vary. If your carrier’s due date for signed paperwork is earlier than these checkpoints, the carrier’s date controls.

What to send your broker for a fair comparison

A quote is only as good as the data behind it. Send these together:

Census: each employee’s date of birth, home ZIP code, coverage tier, and whether they enroll or waive (and why). Include anyone on COBRA.
The full renewal: every page, including rate exhibits and plan change notices.
Summaries of Benefits and Coverage (SBCs): for your current plans and the renewal plans.
Current contributions: what you pay for employees and for dependents, by plan and tier.
Plan year and payroll details: effective date, pay frequency and waiting period.
Claims reports, if you have them: for level-funded plans or groups of 51 or more.

Before your meeting, review our list of questions to ask your broker before renewal. It explains what a good answer looks like for each one, so we will not repeat it here.

Brokers are paid by the insurance carrier, so you pay nothing extra for our help comparing options.

ACA affordability check for applicable large employers

If you have 50 or more full-time employees, including full-time equivalents, you are generally an applicable large employer (ALE) under the Affordable Care Act. A full-time employee averages at least 30 hours a week, or 130 hours in a month. Our full-time eligibility calculator can help you sort this out.

An ALE’s coverage must be affordable and provide minimum value, meaning it covers at least 60% of the total allowed cost of benefits. Affordability is tested on the employee’s cost for the lowest-cost self-only option that provides minimum value.

The IRS adjusts the affordability percentage each year:

Plan years beginning in 2027: 10.22% (Rev. Proc. 2026-26)
Plan years beginning in 2026: 9.96% (Rev. Proc. 2025-25)

Employers rarely know household income, so the IRS offers three safe harbors: Form W-2 wages, rate of pay and the federal poverty line. If a full-time employee gets a premium tax credit for Marketplace coverage, the employer may owe a payment.

Run any new contribution through our ACA affordability calculator. Our ACA compliance support page covers reporting help. For penalty questions, confirm with your CPA or attorney.

Frequently asked questions

Why is my renewal higher than the carrier’s filed average?

The filed number is an average across all of that carrier’s small group plans. Your group’s ages, enrollment mix, location and plan changes can push your renewal above or below it. Ask for a breakdown of the increase by cause.

Can I negotiate a small group renewal in Washington?

Small group rates are filed with and reviewed by the OIC, and carriers apply those filed rates. Your most useful levers are usually plan design, contribution, carrier and funding. The OIC notes that most employers with 51 or more employees negotiate rates with their insurer.

Is it too late to make changes for a January 1, 2027 renewal?

Plan design, contribution and carrier changes may still be possible if you move quickly. Carriers set their own paperwork deadlines, so ask for yours now. The 60-day mark is November 2, 2026. An ICHRA for January 1 is harder, because current employees needed notice 90 days before the plan year.

What happens if my contribution falls below the carrier’s minimum?

The carrier may not accept the group outside an annual window. Under federal rules, insurers can limit groups that miss contribution or participation rules to enrolling from November 15 through December 15. Premera’s 2027 Washington form says such a group may expect to enroll during the designated open enrollment period.

Should I drop coverage and send employees to Washington Healthplanfinder?

Washington does not require businesses with 1 to 50 employees to offer health insurance, according to the OIC. Individual market rates are rising too, with an average approved 2027 increase of 22.2%. ALEs that drop coverage may also owe IRS payments. Our Washington Healthplanfinder guide explains how individual coverage works.

Does it cost anything to have a broker review my renewal?

No. Brokers are paid by the insurance carrier, so you pay nothing extra. Send your renewal and census through our quote request form, or call (206) 653-9636.

About the author

Written by Brandon Hoobler, founder of Washington Insurance Brokers and a licensed Washington insurance broker (WA OIC #824207, verify a license). He has worked in insurance since 2009 and helps Washington employers with 5 to 500 employees compare group benefits. Questions about your plan? Call (206) 653-9636.

Sources

Posted in Employee Benefits