Healthcare insurance premiums are trending up in 2025, both for employer-sponsored coverage and for individual marketplace plans. At Henry Insurance, we want to help you understand what’s driving these increases, how your coverage might be impacted, and what steps we can take together, so you can protect what matters most. From economic dynamics to some of the cost-drivers behind the increase, let’s get into a few of the implications for Baton Rouge employers and families – plus what you should watch heading into 2026.
National premium trends in 2025
According to the Kaiser Family Foundation (KFF), the average annual family premium for employer-sponsored health insurance rose 6% in 2025, reaching about $26,993. Over the past five years, premium growth has roughly kept pace with inflation and wages.
The Affordable Care Act (ACA) faces uncertainty as key subsidies near expiration amid political debate. With open enrollment underway, some ACA enrollees are seeing premiums jump as much as 59% – a spike tied to both subsidy lapses and long-term cost pressures. In addition, costs are expected to increase due to higher utilization of services and rising provider and pricing trends.
What’s driving premium increases
Several key factors are behind the upward pressure on premiums:
- Medical inflation & provider pricing: Costs for hospital services, physician care, labs, etc., continue to grow faster than general inflation (Johns Hopkins).
- Prescription drug costs: Weight loss drugs, like GLP-1 therapies, and other specialty drugs are increasingly a line item on employer/insurer cost sheets.
- Marketplace dynamics and risk shifts: The expiration of federal subsidies and changes in who remains covered can make the overall risk pool costlier, pushing premiums even higher.
What does this mean for Louisiana policyholders?
While much of the data above is national, the implications for Baton Rouge and surrounding Louisiana markets are very real. In a time when many large insurers and online marketplaces feel distant, Henry Insurance offers something different – a local team who knows the Baton Rouge market and can work directly with you or your HR team to interpret the fine print and avoid costly surprises.
As an independent agency, we aren’t tied to one carrier – this means that when premiums rise, we have options for you. We can shop across multiple insurers, negotiate plan changes, and help you find the balance between affordability and quality coverage in Louisiana.
For employers in Baton Rouge: If national averages show 6% increases, your renewal quotes for 2026 may be in that ballpark or higher depending on your carrier, plan size, and local provider network. Smaller employers often feel the effects more. Here’s what you can do:
- Start renewal discussions early: Don’t wait until the last minute. Begin analyzing claims and discussing potential design changes.
- Consider plan design shifts: With premium increases, could you shift toward a higher deductible plan, offer an HSA option, incorporate telehealth/wellness programs, or adjust cost-sharing to share some of the increase?
- Examine your network and carrier options: Sometimes switching carriers or adding alternatives may mitigate cost increases.
- Communicate with employees: Rising premiums can hurt morale or lead to coverage drop-outs. Proactive, transparent communication with your employees can help mitigate the news.
How Henry Insurance Can Help
At Henry Insurance, we view ourselves as partners in navigating these premium pressures for both employers and individuals in Baton Rouge. Here’s what we’re doing:
1. Staying one step ahead of market trends
We stay current on what carriers are requesting in terms of rate increases, network changes, and plan design shifts, so you aren’t caught by surprise.
2. Helping you control costs before renewal season hits
When renewals come up, we don’t just accept a rate increase as the new reality – we investigate options. We consider design changes we can implement to mitigate the increase.
Examples may include: higher deductibles with HSA‐qualified plans, wellness incentives, alternative network options, cost-containment tactics.
3. Making complex healthcare choices easier to navigate
If you have employer coverage, we can help you understand how your premiums, deductibles, and networks may change. If you purchase a plan on the marketplace or are self-employed, we can help you evaluate subsidies, plan tiers, and provider networks to determine whether your current plan still makes sense.
4. Building a strategy that fits your budget and long-term goals
Given the premium increases, we advise our clients to prepare now for the renewal conversations. We can’t say it enough – strategic planning goes a long way in achieving the best outcomes.
A Quick Look Ahead: What to Watch in 2026
- The expiration of enhanced premium tax credits for marketplace plans is predicted to trigger larger premium jumps for some individuals/families.
- New therapies and expensive treatments (weight-loss drugs, specialty drugs, advanced therapies) will continue to drive cost unless managed.
- The risk pool dynamics: If healthier people decide to drop coverage because premiums rise, that can lead to further increases for those remaining.
Partner with Henry Insurance Services
Healthcare premiums are rising, and the upward pressure unfortunately predicts little relief. Understanding your renewal, your plan design, your coverage choices, and working with a broker who knows the local market will make a difference in your 2026 healthcare premiums. Here at Henry Insurance, we’re here to help you navigate the changes and mitigate health insurance costs where possible.
For over three decades, we’ve built our reputation on genuine service. And, that commitment still drives us today and allows us to help you through this difficult market.
Contact Henry Insurance today. Let’s schedule a review and map out your best strategy for 2026.
