Whether you already offer coverage or are evaluating it for the first time, understanding the latest cost trends can help you budget more accurately and make smarter decisions for your team.
What Is the Average Cost in 2025?
Health insurance premiums typically range from $300 to $700 per employee per month for a standard plan.
Why Are Rates Increasing?
Several factors are driving premium increases in 2025:
Are There Ways to Control Costs?
Yes. Many small businesses are shifting toward strategies that offer cost predictability and plan flexibility. We recommend all businesses proactively evaluate their insurance options on a rolling, annual basis.
What Should You Do to Prepare?
Kick off the evaluation process early and conduct a full review of your current plan’s usage. A benefits specialist like ProHealth PEO Advisors can help compare all of these options or evaluate alternative carriers that best align with your goals. Consider offering several plans at different price points so employees can choose what works best for them.
Conclusion
Health insurance costs are going up, but that doesn’t mean you have to overpay or settle for a one-size-fits-all solution. With the right strategy and an experienced advisor, you can create a plan that balances cost with coverage and helps your business stay competitive in today’s market.