\n<\/p>\n
Group health insurance might be going the way of the pension. Just like companies swapped guaranteed pensions for 401(k)s and handed employees the responsibility of managing their own retirement, a growing number of employers are now handing workers cash instead of a company-picked health plan, Bloomberg reports<\/a>. <\/p>\n The reason for the shift is economics. Group plan costs are expected to hit $18,500 per employee this year, a 6.7% jump, the steepest increase in 15 years, according to Mercer.<\/a> Employers are responding by ditching traditional group plans whole sale.<\/p>\n More than 20,000 companies switched to Health Reimbursement Arrangements (HRAs) in 2026, a 53% jump from last year, according to a new report from the HRA Council, cited by Bloomberg. Instead of managing a group plan, companies using HRAs just hand employees cash to go buy their own coverage on the ACA marketplace.<\/p>\n<\/p><\/div>\n Group health insurance might be going the way of the pension. Just like companies swapped guaranteed pensions for 401(k)s and handed employees the responsibility of managing their own retirement, a growing number of employers are now handing workers cash instead of a company-picked health plan, Bloomberg reports<\/a>. <\/p>\n The reason for the shift is economics. Group plan costs are expected to hit $18,500 per employee this year, a 6.7% jump, the steepest increase in 15 years, according to Mercer.<\/a> Employers are responding by ditching traditional group plans whole sale.<\/p>\n More than 20,000 companies switched to Health Reimbursement Arrangements (HRAs) in 2026, a 53% jump from last year, according to a new report from the HRA Council, cited by Bloomberg. Instead of managing a group plan, companies using HRAs just hand employees cash to go buy their own coverage on the ACA marketplace.<\/p>\n<\/p><\/div>\n