Bloomberg: US Employers Abandon Group Health Insurance as Price Hikes Bite

More than 20,000 companies entered Health Reimbursement Arrangements in 2026 — a 53% jump from last year — as employers brace for the steepest premium increases in 15 years, according to a new report from the HRA Council. Under the ICHRA model, employers set a fixed monthly contribution and employees use it to buy coverage on the ACA marketplace or another exchange, a structural shift Bloomberg compares directly to corporate America's move from pension plans to 401(k)s. The scale of the pivot is what stands out: large employers were the fastest-growing adopter segment, with ICHRA uptake among them more than doubling year over year, even as consultancy Mercer projects employer health costs will hit $18,500 per employee in 2026, a 6.7% increase. The median ICHRA worker received a $459 monthly allowance against a $567 premium — proof the model is closing most of the gap, not just shifting the burden. With KFF's preliminary rate filings showing insurers seeking 14–20% increases for small-group plans next year, the report reads less like an emerging trend and more like a market correcting toward a model built for exactly this moment.