Employee Dissatisfaction With Employer-Provided Health Insurance Grows

Business leaders are increasingly encountering employee dissatisfaction with employer-sponsored health insurance plans. As of 2026, the average Net Promoter Score (NPS) for health insurance carriers has plummeted to 37, with some major players reporting negative scores. This indicates that employees are more likely to recommend their favorite toothpaste than the health insurance provided by their employer.

The traditional health insurance industry faces a confidence crisis, partly due to rising costs driven by mandates for comprehensive coverage. This has led to a growing interest in health sharing arrangements. These are not health insurance policies and are therefore not bound by the Affordable Care Act (ACA). Healthshare models allow for the exclusion of pre-existing conditions and focus on a smaller risk pool of members who commit to healthy lifestyles, resulting in significantly lower monthly contributions.

Health sharing arrangements differ from traditional insurance in their operational model. While insurance carriers may have incentives to deny claims to increase profits, healthshares operate on a community-sharing basis with transparent guidelines. Benefits such as near-perfect approval ratings for eligible medical needs, freedom to choose any doctor, and the ability to shop for care to reduce costs contribute to their growing appeal.

In the current competitive talent market, companies must re-evaluate their benefits packages. Traditional health insurance plans with high deductibles and narrow networks are no longer sufficient to attract and retain staff. Some forward-thinking CEOs are exploring alternatives like Medical Expense Reimbursement Plans (MERP) or Individual Coverage HRAs, and direct healthshare memberships. These solutions can offer significant cost savings while substantially improving employee experience.