Group Insurance Premiums Just Spiked? Break Up With It.

By McGarrity LLC — Insured AF

So you just got your renewal quote for the year.

You opened that email like it was a text from an ex: one eye closed, bracing for pain.

And yup. There it is. Another 20% hike. No perks. No better network. Just a shinier PDF with the same old “industry standard” excuses from your broker.

If you're wondering whether it's time to break up with your group health plan, you're not alone. Lots of smart business owners are having the same moment of clarity. Especially if you’ve got 2 to 25 employees and a payroll that’s treating you worse than your last relationship.

Let’s lay it all out. No jargon. No fluff. Just what you need to know to decide if this relationship is still serving you. Or if it’s time to start seeing other options.

💸 Group Health: The Clingy Ex You Can’t Afford Anymore

Group health insurance used to be a good thing. A benefit. A way to take care of your people.

Now? It’s like the clingy ex who keeps asking for money and making excuses to not pay you back.

  • Premiums keep rising

  • Deductibles are sky-high

  • Half your team doesn’t even use it

  • And you’re footing the bill like it's 1998

You're not crazy. The group model is outdated for a lot of small businesses. Especially if you're under 50 employees and have team members scattered across different states. Or just sick of the annual renewal roulette.

🚨 Do You Ghost It? Or Try a Soft Exit?

Not every breakup has to be messy. You don’t have to burn the plan to the ground.

But you do need to stop pretending it’s the only option.

You’ve got choices. Let’s meet your rebound plans.

🛠️ Option 1: The "I Deserve Better" Plan (aka ICHRA)

This one’s for the business owner who’s ready to stop managing everyone’s needs and just offer real support without being the middleman.

What it is: You set a monthly allowance (tax-free). Your team picks the individual plans that work for them. You don’t own or manage the group plan anymore.

Why it's a glow-up:

  • Great for teams of 20–49

  • Works for remote or multi-state staff

  • Predictable budget (you choose how much)

⚠️ The employees need help picking plans, but that’s where I come in. No drama, just clear choices.

🧠 Option 2: The "It’s Not You, It’s Everyone" Move (aka ACA Plus)

Some business owners are done with the group setup entirely. They offer supplemental coverage, maybe include dental/vision, and let people mix-and-match what works best.

Why it works:

  • Major cost savings

  • Your team gets to choose what they’ll actually use

  • You still get to say you offer benefits (and mean it)

⚠️ You can’t require them to buy coverage this way, but with the right framing, it’s often a win for everyone.

🤝 Option 3: The "Let’s Try Therapy First" Approach (aka Stay... But Smarter)

Some group plans still make sense. IF:

  • Your team needs coordinated care or has chronic conditions

  • Everyone’s local or in-network

  • You’ve got 10+ people enrolled

  • You're in a competitive hiring market

What to do: Stop auto-renewing and shop smarter. Level-funded, co-op, or optimized group plans can work, but only if you shop with someone who actually explains the options.

⚖️ What's the Right Move?

There’s no One-Size-Fits-All anymore. And anyone pushing one is probably more interested in their commission than your coverage.

Ask yourself:

  • Do I know what I’m actually paying for?

  • Am I getting value? or just avoiding the hassle of change?

  • Would my team benefit more from flexibility than a flat plan?

If you’ve ever thought, “This just doesn’t feel worth it,” trust that instinct.

💡 The Insured AF Bottom Line

Is group insurance still worth it?

➡️ Sometimes yes.
➡️ Often no.
➡️ And never without a second opinion.

You deserve a benefits setup that’s smarter, leaner, and tailored to your business—not built for someone else’s.

👋 Ready to See Other Options?

You don’t have to ghost your broker today. But maybe it’s time to start exploring what else is out there.

👉 Book a free call and I’ll walk you through the good, the bad, and the "WTF is this charge" parts of your current setup.

📌 TL;DR Should You Break Up With Your Group Plan?

  • Your 2026 renewal quote probably sucked.

  • Group plans are outdated for a lot of small businesses.

  • You have better options, like ICHRAs or ACA Plus setups.

  • You can still offer benefits. But be smarter and have more control.

  • Don’t keep paying for something that doesn’t fit.

💬 Let’s find a better match for your business. One that actually texts back and doesn’t drain your bank account.

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