Why Now Is the Time for Employers to Rethink Medical Coverage: A Smarter Solution
In today's competitive labor market and amidst rapidly escalating healthcare costs, employers and human resource professionals must proactively evaluate their group medical plans. Health insurance premiums have been on the rise in California, with Covered California announcing a 9.6% increase in 2024 and a projected 7.9% increase in 2025. Over the past five years, employer-sponsored group plans have steadily become more expensive, with cumulative increases exceeding 35%.
Compounding this issue, many employees are being disenrolled from Medicaid due to the end of the continuous coverage provisions. This shift forces more individuals onto employer-sponsored plans, potentially increasing the employer's share of healthcare costs and making it more challenging to meet minimum enrollment requirements.
The good news? There's a smarter way forward: Nonstop Health, an innovative program that helps control costs while dramatically improving access and satisfaction for employees. Holistic Employee Benefits now offers this solution to help companies modernize their benefits and stop wasting money on outdated plans that no longer meet the needs of today's workforce.
The Cost Crisis in California
Healthcare costs in California are rising faster than ever. According to Covered California, premiums in the individual market rose nearly 10% in 2024, the largest increase since 2018, and another 7.9% in 2025. Employer-sponsored group health plans face similar pressures, with the California Public Employees' Retirement System (CalPERS) reporting a 9% increase for basic health products in 2025. Over the past five years, the cumulative increase in many group plans has exceeded 35%, burdening employers and putting essential healthcare further out of reach for employees. (coveredca.com)
For HR professionals and business owners, these trends demand immediate attention. Continuing to renew existing coverage year after year without comparison shopping or innovation is a missed opportunity—and a costly one at that.
What Is Nonstop Health?
Nonstop Health is a game-changing health plan model built around eliminating employee out-of-pocket costs while containing employer expenses. At its core, the program provides “first-dollar coverage” for employees. That means no upfront deductibles or copays for in-network care. Instead, employees receive a pre-funded Nonstop Visa card that covers expenses up to the deductible, making care affordable and accessible from day one.
This strategy flips the traditional high-deductible health plan model on its head, reducing financial stress on employees while allowing employers to benefit from lower premiums associated with HDHPs.
How Employees Benefit
What HR Professionals and Employers Gain
The Urgency: Rising Healthcare Costs and Medicaid Disenrollment
Healthcare costs in California have been escalating significantly. For instance, premiums for health insurance sold through the state's marketplace, Covered California, increased by nearly 10% in 2024, following a 7.9% hike in 2025—the largest since 2018. Similarly, the California Public Employees' Retirement System (CalPERS) reported a 9% increase in premiums for basic products in 2025. These rising costs underscore the need for employers to reassess their healthcare offerings proactively. (coveredca.com)
Additionally, the unwinding of continuous Medicaid coverage is leading to the disenrollment of many employees from Medicaid. As these individuals transition to employer-sponsored plans, employers may face increased enrollment, potentially pushing them over minimum participation thresholds and increasing their overall healthcare expenditures.
Take the Next Step
To explore how Nonstop Health can benefit your organization and employees, consider reaching out for a personalized proposal. Visit holsiticeb.com/meeting to schedule a free consultation and learn more about implementing this innovative healthcare solution.