How Employers Can Address Rising Health Insurance Costs with a Digital Health Delivery Network

The recent Wall Street Journal article, Health Insurance Costs for Businesses to Rise by Most in 15 Years, paints a challenging picture for U.S. employers. Health insurance costs are projected to surge by over 9% in 2026, following several years of already steep increases. With the average annual cost of family coverage nearing $25,500, these rising expenses now rival the price of a small car – creating an unsustainable burden for employers and employees alike.

At Solera Health, we believe there’s a better path forward. Employers don’t have to simply absorb these rising costs or pass them on to employees. By rethinking the traditional brick-and-mortar care model and embracing integrated digital health delivery, organizations can create meaningful change – both in employee health outcomes and their bottom line.

What’s Driving the Surge in Costs

The article highlights several factors behind these historic increases:

• Higher prevalence of chronic conditions, like diabetes, cardiovascular disease, and musculoskeletal issues, now impacting younger working-age populations.

• Rising drug costs, particularly GLP-1 medications for weight loss and diabetes management.

• More aggressive billing practices, amplified by sophisticated technology tools.

• Increased demand for healthcare services across a broader population.

These challenges are deeply interconnected. Chronic conditions and specialty drug use lead to higher utilization of hospital systems, where negotiated rates continue to climb. Employers are stuck in a cycle of increasing spend with few levers to control it.

Why Traditional Approaches Fall Short

Many employers respond to rising costs with short-term tactics like:

• Shifting costs to employees through higher payroll deductions or out-of-pocket maximums.

• Narrowing provider networks or limiting access to certain doctors and hospitals.

• Frequent plan design changes that can frustrate employees and disrupt care.

While these approaches may create temporary relief, they rarely address the root causes driving claims costs. Without improving employee health outcomes, costs will continue to rise year after year.

A Sustainable Solution: Digital Care Delivery

Solera’s digital health delivery network offers an alternative. Instead of piecemeal point solutions or reactive cost-shifting, Solera brings together a curated ecosystem of more than 30 digital health partners – a number that continues growing – under one coordinated platform.

Our approach enables employers to:

• Intercept and navigate members into the right digital health programs at the right time, whether for weight management, musculoskeletal care, diabetes prevention, or behavioral health.

• Measure outcomes and ROI with claims-based data, giving employers confidence their investments are working.

• Reduce total cost of care by preventing costly interventions like ER visits, surgeries, or reliance on expensive specialty medications.

The Path Forward

The latest projections confirm that employers must act now. With healthcare costs rising at the fastest rate in over a decade, continuing with the status quo is no longer an option. Digital health delivery networks provide a scalable, measurable, and sustainable way to address the underlying drivers of spend.

At Solera, we partner with forward-thinking health plans and employers to deliver a seamless digital experience for their members and teams, while tackling the financial pressures of rising healthcare costs. Together, we can create a future where high-quality care is accessible, affordable, and effective for both businesses and the people they serve.

Download our latest eBook to discover how a digital health delivery network can help your organization manage chronic conditions, improve outcomes, and reduce total cost of care – all while enhancing the member experience.

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