Health Benefits Keep Getting More Expensive. What Can Washington Employers Do?

Across 10 employer groups using Nice Healthcare, BHT’s estimates show $119,213 in avoided insurance claims costs and $37,358 in employee savings on visit and prescription copays.

Those numbers give small business owners something concrete to consider as another round of health insurance increases approaches. Where employees get care, what they pay for prescriptions, and whether they know about their included benefits deserve a place in the renewal conversation.

Put these two numbers on the table

• $119,213 in estimated avoided claims costs: Care delivered through Nice that would otherwise have been billed through health insurance.
• $37,358 in estimated employee savings: Visit and prescription copays employees would otherwise have paid.

The claims figure represents estimated spending avoided by insurance, rather than money returned directly to employers. Lower claims spending can help reduce cost pressure, but it doesn’t guarantee a particular renewal rate. These estimates cover the 10 groups reviewed and aren’t annualized.

For employers, this is a reason to look closely at how employees use their benefits. For employees, it can mean getting care or a covered prescription without another copay.

Free medications make the benefit real

BHT includes Nice Healthcare at no additional cost with most medical plans. It’s a separate care benefit that gives eligible employees and dependents access to primary care, mental health therapy, physical therapy and hundreds of covered medications.

Eligible members can get medications on Nice’s covered list for $0 when a Nice clinician prescribes them. That includes options for ongoing needs as well as short-term illnesses. The specific medication, form and dose must be covered, and the prescription must be filled through a participating pharmacy.

Our July 2026 medication guide gives examples across allergies, anxiety and depression, blood pressure, thyroid health and other common needs. It includes metformin, estradiol and progesterone, among many others. The guide is a July snapshot; members should confirm current availability with Nice.

Our menopause and perimenopause article, published in June 2026, shows another way this benefit can help. Employees can discuss symptoms and treatment options with a clinician, including whether a covered medication such as estradiol or progesterone is appropriate. Eligible prescriptions can be provided for $0.

For someone paying a prescription copay every month, that’s a benefit with a direct effect on their budget. Share these examples with your team. “We have Nice” is easy to overlook. “Ask Nice whether your medication could cost you $0” gives someone a reason to take the next step.

The employer cost outlook deserves attention

The latest research shows why employers should start that conversation now.

An August 31, 2026 survey update published by Mercer projects an 8.2% average increase in total health benefit costs per employee for 2027, after employers’ planned cost reductions. Employers estimated an 11% increase without those changes. The preliminary findings reflect responses from more than 1,800 employers nationwide.

That difference shows employers are planning changes to manage the increase. It doesn’t establish a guaranteed savings rate, and some changes may shift costs to employees. Both the business and employee budgets need attention.

An August 6, 2026 KFF analysis found a 14% median proposed premium increase among 295 small-group insurers nationwide. That figure is the midpoint of the insurers’ proposed increases. These are requests, and the measure differs from Mercer’s broader employer cost forecast.

KFF’s review points to higher medical prices, increased use of care, and spending on specialty drugs and other prescriptions. Those pressures help explain the increases. They also make it worth reviewing how your employees access everyday care and covered medications.

Individual market: approved 2027 Exchange rate increases

Washington’s approved average increase for the 2027 individual Exchange market is 22.2%, compared with the 22.4% request. Eleven of the 12 approved insurers have average increases of at least 10%, and six exceed 20%.

Individual plans cover people who buy their own insurance, including through Washington Healthplanfinder. These aren’t employer group rates or BHT renewal rates. They reflect some of the same rising medical and prescription costs employers face, alongside individual-market pressures such as changes in financial assistance and who remains enrolled.

Source: Washington Office of the Insurance Commissioner. These are carrier averages, not each household’s premium change after financial assistance. Some listed insurers sell individual plans both on and off the Exchange. Asuris Northwest Health sells only off the Exchange; its 14.9% request remained pending in the announcement and is excluded from this table.

This follows the 21% average increase approved for 2026. That’s two consecutive years above 20%. Each new increase starts from an already higher price.

Small-group market: 2027 requests, approvals unverified

The nine Washington small-group filings we’ve reviewed request increases ranging from 7.91% to 19.99% for 2027. Seven request double-digit increases. Seven also request an increase larger than their approved increase for 2026.

The comparison below carries forward our May 2026 rate update and the OIC filing results we reviewed. The 2027 figures are requests; approved small-group rates remain unverified.

Source: Washington OIC health rate search; 2026 figures from our May article. Approved 2027 rates weren’t shown in the results reviewed. Approval status may have changed since those results were captured.

These filings are separate from individual-market Exchange approvals and aren’t a schedule of BHT renewal rates. They show the direction and breadth of requested increases in Washington’s small-group market.

Before you renew, ask for the full cost comparison

Paying more every year shouldn’t become the entire benefits strategy.

Business Health Trust gives small and mid-sized Washington employers access to group purchasing, more than 80 medical plan options, and support with enrollment and consolidated billing. Work with your broker and BHT to compare options against the needs of your business and employees.

Ask for answers to four questions:

1. What will the business spend over the full year? Compare employer contributions using the same employees and coverage tiers across options. Include fees and any separately purchased benefits.
2. What will employees pay? Review paycheck deductions, deductibles, copays, coinsurance and out-of-pocket maximums. A lower employer contribution can leave employees carrying a larger share of the bill.
3. Can employees keep getting the care they need? Check important doctors, hospitals and prescription coverage. Confirm referral requirements and medication restrictions before choosing a plan.
4. Which included benefits could reduce everyday costs? Ask which options include Nice, who is eligible, and how its services work alongside the medical plan. Check whether you’re paying separately for a service already available through your benefits.

Give employees a clear next step

If your plan includes Nice, make it easy to find and use. A mention during open enrollment won’t reach everyone when they actually need care.

• Share the account setup instructions and where to book a visit.
• Send the medication examples with a reminder to check the current covered list.
• Offer an employee orientation and include eligible dependents in your communications.
• Review aggregate signup and visit activity with BHT so you can see where more communication may help.

BHT’s Nice employer resources include orientation videos, employee flyers, email templates and medication lookup links. You don’t have to create the materials yourself.

The $119,213 in estimated avoided claims costs and $37,358 in estimated employee savings show why this deserves a place in your benefits work. The opportunity starts with employees knowing what they have and how to use it.

Bring your renewal to your broker and BHT. Ask for a comparison, ask where everyday care costs can be reduced, and leave with a plan to help employees use their benefits.

Contact BHT to review your options and request a quote.