Group Health Renewals Are Up Again: ACA-Compliant Alternatives for Employers Before January 1
Nathan Beck, President · October 6, 2026
Another renewal season, another pricing conversation
For many employers, group health renewal season has become one of the most difficult budgeting exercises of the year. When January 1 renewals arrive with higher costs, business owners and leadership teams are often left balancing employee needs, company budgets, and compliance obligations on a tight timeline.
If your company has 25 or more employees, it may be time to look beyond a standard fully insured renewal and review other ACA-compliant options. The goal is not simply to reduce premium spend in the short term. It is to build a coverage strategy that supports your workforce and gives your business more room to plan.
Why employers should review options before renewing
A renewal notice can create pressure to move quickly, especially when open enrollment and year-end planning are already in motion. But automatically accepting a renewal may mean missing alternatives that better align with your workforce and budget.
Before January 1, employers should take time to evaluate:
- Current premium increases
- Employer contribution levels
- Employee participation and plan usage patterns
- Network access and provider disruption concerns
- Compliance requirements under the ACA
- Administrative capacity for any plan changes
A structured review can help employers compare options based on more than price alone.
What ACA-compliant alternatives may look like
ACA-compliant alternatives are not one-size-fits-all. Depending on your group size, employee demographics, and budget goals, there may be several paths worth discussing.
Level-funded health plans
Level-funded arrangements can be an option for some employers seeking a different cost structure than traditional fully insured plans. These plans typically combine fixed monthly funding with components for claims, administrative costs, and stop-loss protection.
For the right group, a level-funded approach may offer:
- More visibility into claims trends
- Potential cost efficiencies compared to some renewals
- Access to plan data that can support future planning
These plans are not a fit for every employer, but they are often part of the conversation for groups looking at alternatives before a January renewal.
Marketplace-based group options
Some employers may benefit from reviewing marketplace-based solutions designed to provide ACA-compliant coverage options for employee groups. Through options such as Brazos Marketplace, businesses can explore plans that may offer greater flexibility in how coverage is structured and selected.
This approach can be useful for employers that want to:
- Expand plan choice for employees
- Review different carrier and network options
- Reassess employer funding strategy
- Keep coverage aligned with ACA requirements
A marketplace model can also help employers compare available plans in a more organized way during renewal season.
Contribution and plan design strategies
In some cases, the answer is not changing platforms but adjusting how the current or future plan is structured. Employers may want to review:
- Deductible and out-of-pocket levels
- Copay versus coinsurance models
- Employer contribution percentages
- Dependent coverage strategy
- HSA-compatible plan options
These decisions can affect both affordability and employee experience, so they should be reviewed carefully and communicated clearly.
Questions employers should ask before January 1
As renewal deadlines approach, business owners should be ready to ask practical questions, including:
- Is our current plan still aligned with our workforce?
- Are we evaluating alternatives early enough to make a thoughtful decision?
- What ACA-compliant options are available for our size and structure?
- How would a change affect employees, administration, and enrollment timelines?
- Are there opportunities to improve our coverage strategy for the next plan year?
The earlier these conversations begin, the more options employers usually have to consider.
Why timing matters
Waiting until late in the renewal cycle can limit your choices. Reviewing alternatives ahead of open enrollment gives your team time to compare plan structures, review contribution scenarios, and prepare employee communications.
It also allows for a more strategic conversation about benefits as part of your broader business planning. Group health coverage is not just a line item. It plays an important role in hiring, retention, and employee satisfaction.
A practical next step for employers
If your renewal is increasing again this year, now is a good time to review whether your current group health plan is still the right fit. Employers with 25 or more employees may have ACA-compliant alternatives worth exploring before January 1.
At Sherlock Insurance Group, we take a strategy-first approach to protecting your business, from property and casualty to workers' compensation. For group health, we work alongside our sister company, Brazos Marketplace, so you have one team helping you look at the full picture: your goals, your workforce, and your timeline.
If your group health plan renews January 1, now is the time to start that conversation, not when the renewal lands.
IM me or email me at nathan@sherlockgroup.com, and we'll connect you with someone who can help at our sister company, Brazos Marketplace.
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