The employee benefits market is increasingly shaped by trends that include regulatory volatility, shifting compliance priorities, accelerated cost pressures and ever-evolving workplace demands.

This projection marks the fourth consecutive year of elevated health care cost trends approaching double digits and extends one of the most sustained periods of health care inflation employers have faced in decades.

Nearly three-quarters (73%) of HR professionals said "employee feedback" is the top factor they consider when reevaluating spending account providers.

"Today's workforce needs aren't one-size-fits-all anymore, but many small businesses still feel forced into one-size-fits-all benefits," according to a recent report.

Key drivers of the premium hike, according to insurers, include the rising cost of health services, the expiration of the enhanced premium tax credits, and some federal regulatory changes.

"The No Surprises Act was designed to protect patients from unexpected medical bills, not to increase healthcare costs," Catherine Gaffigan, president of health solutions at Elevance Health, said in a statement.

LIMRA research director Kimberly Landry said it's concerning that some workers, especially Gen Z employees, are reducing 401(k) contributions because of rising health insurance premiums.

More than half of insurance brokers (56%) are now actively recommending or implementing ICHRAs.