Hawaii businesses and residents are preparing for a notable increase in healthcare costs, as the state's Obamacare plans are set to increase by 11.6% in 2026, according to a recent report. Factors cited by the Division of Consumer Advocacy include growing medical and pharmacy costs, coupled with increased utilization of healthcare services, particularly in high-cost therapies and specialty drugs; meaning businesses might face increased costs for employee health benefits. Furthermore, individuals may face higher out-of-pocket expenses for their care.
This rise in premiums mirrors a broader national trend. A KFF analysis of initial rate filings indicates that the median proposed increase for ACA Marketplace plans across the US is 18%, more than double the increase proposed the previous year. Another KFF quick take highlights the fact that in states using Healthcare.gov, premiums are rising an average of 30%.
The implications of these increases are far-reaching for Hawaii's economy. Businesses, particularly small and medium-sized enterprises (SMEs), will likely see their operational costs rise as they shoulder the burden of employee healthcare expenses. This could potentially lead to reduced hiring, salary freezes, or a decreased ability to invest in growth initiatives. Individuals, already grappling with the high cost of living in Hawaii, may find it more challenging to afford health insurance, potentially leading to a rise in uninsured residents. This, in turn, could strain the state's healthcare system and increase demand for public health services. KITV reports that state leaders are worried that many more could be left without critical health insurance.
For Hawaii's entrepreneurs, this increase in healthcare costs necessitates careful financial planning. Businesses should explore strategies like negotiating with insurance providers, promoting employee wellness programs to manage healthcare utilization, and potentially reviewing their benefits packages in an effort to mitigate the financial impact. Policy changes and market dynamics will play a key role in how these increases will affect consumers and employers across the state.
