Bloomberg Surveillance · Saturday, August 29, 2026
U.S. employers are increasingly opting out of group health insurance plans and instead offering stipends for employees to purchase their own coverage, a trend accelerated by rising insurance costs. While some employees appreciate the control, many find the administrative hassle and potentially higher costs of marketplace plans burdensome.
“More and more U.S. Employers are opting out of group health insurance plans as they brace for large price hikes.”
“It's only been around since 2020, but it's something that people have been looking into because health insurance has just gotten so expensive. Companies are spending almost $ 19, 000 per employee these days.”
“But from the vast majority I've heard from, they're annoyed that they have to go through the administrative hassle of sorting through a marketplace. Marketplace plans are more expensive sometimes. They have smaller networks of doctors and hospitals. And they tend to have higher deductibles. So it doesn't work out for everyone.”