Employers and Health‑Plan Fiduciaries Face Rising Costs and Transparency Demands
Employers preparing for the 2027 health‑plan open enrollment season confront steep premium hikes, with fully insured plans seeing increases of 18% to 25% on average and some rising above 60%. A Business Group on Health survey predicted median health‑care costs for 2026 would be 9% higher than in 2025, and 79% of small‑ to mid‑sized employers reported double‑digit premium growth, with one‑fifth experiencing rises of 50% or more.
Fiduciaries are under heightened scrutiny after the 2026 Consolidated Appropriations Act added pharmacy‑benefit‑manager fee disclosure rules and expanded ERISA reporting requirements. ERISA lawsuits targeting health‑care plans have grown, now accounting for 22% of such cases. A lawsuit filed in May 2026 alleges that Banner Health and its broker Lockton Companies mismanaged a voluntary benefits program, with Lockton collecting over $20 million—about 38.6% of premiums—from 2020‑2024, far above the typical 10% industry norm.
Experts advise plan sponsors to communicate changes transparently, clearly explaining premium impacts and design adjustments to maintain employee trust during the enrollment window.
Entities: Banner Health · Consolidated Appropriations Act of 2026 · Fidelity Investments · Lockton Companies · U.S. Department of Labor
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] The 2026 Consolidated Appropriations Act introduced pharmacy‑benefit‑manager fee disclosure rules under ERISA. (5e8a2b9f-32d5-449b-8157-6391b63f3b8d)
- [○ 1 SOURCE] Lockton Companies allegedly collected over $20 million between 2020 and 2024, averaging 38.6% of premiums for certain voluntary insurance, far above the industry norm of about 10%. (5e8a2b9f-32d5-449b-8157-6391b63f3b8d)
- [○ 1 SOURCE] Premiums for fully insured health plans in 2026 increased by 18% to 25% on average, with some exceeding 60%. (fb0ed0db-4ac6-4f85-8f9c-723b8f111ef5)
- [○ 1 SOURCE] Employers predicted median health‑care costs for 2026 would be 9% higher than in 2025. (fb0ed0db-4ac6-4f85-8f9c-723b8f111ef5)
- [○ 1 SOURCE] A lawsuit filed in May 2026 alleges Banner Health mismanaged its voluntary benefits program, leading to inflated premiums for employees. (5e8a2b9f-32d5-449b-8157-6391b63f3b8d)
- [○ 1 SOURCE] ERISA lawsuits focusing on health‑care plans account for 22% of all ERISA cases. (5e8a2b9f-32d5-449b-8157-6391b63f3b8d)
- [○ 1 SOURCE] 79% of small‑ and mid‑size employers’ health plans saw double‑digit premium increases, and one in five saw rises of 50% or more. (5e8a2b9f-32d5-449b-8157-6391b63f3b8d)
- [○ 1 SOURCE] Plan sponsors should communicate health‑plan changes transparently during open enrollment, emphasizing cost impacts to maintain employee trust. (fb0ed0db-4ac6-4f85-8f9c-723b8f111ef5)