Arizona Health Insurance Tips: 3 Common Mistakes at Renewal Time
Every year, you typically have the opportunity to choose to renew your existing health insurance plan, or make changes and enroll in something new. At AZ Health Insurance Brokers, we help people sign up for all types of insurance, including
group business health insurance for their employees,
individual health insurance and
family health insurance.
From working with self-employed individuals and individuals who want better insurance plans for their families, to consulting business owners on options to consider for their workforces in 2026 and beyond, our decades of experience serving diverse groups have shown common trends in regards to purchasing health insurance.
For business owners, offering health insurance can impact everything from hiring better talent, to retaining top performers. The 2025 “Forbes” Advisor survey found employer-covered healthcare is still the #1 benefit employees want, with more than two-thirds of employees believing this is the most important benefit. Business owners agree, as 68% of employers said employer-covered healthcare is also the most important benefit.
For
employers that offer health insurance, we’ve rounded up the three most common mistakes business owners make when it comes to renewing health insurance plans for the employees at their companies. Consider these pitfalls and ways to mitigate risks, to keep employees happy and provide the best options for your workforce.
Key Takeaways
- Making a mistake during business health insurance renewal time could result in extra costs for your business.
- To avoid overpaying for group health insurance or choosing a plan that doesn’t benefit your employees, we recommend to speak with an expert group health insurance broker who can make personalized recommendations based on your ideal budget and coverage to compare plans.
- You can also save money on group health insurance by adjusting your previous offerings. By looking at details like your employees’ healthcare usage trends, there may be savings opportunities year-over-year.
Group Health Insurance Mistake #1: Not Shopping Insurance
First, one of the main mistakes we see is employers not shopping around for insurance every year. Many employers simply renew the same business insurance policy they had the year prior, even if it’s no longer the best fit for their employees.
For businesses that are focused on scaling and growing, especially those that have at least 10 employees enrolling in employer-offered health insurance, it really makes sense to shop business insurance plans every year. Carriers go through cycles based on who’s buying market share for the current year compared to the previous year, so it’s important to take a fresh look at everything on an annual basis. That way, you can get all available options laid out in front of you.
This is a free service we provide for all our group health insurance providers at AZ Health Insurance Brokers. Every year, we walk our clients through all available plans, so they can be confident the one they’re choosing works for their workforce.
If your broker doesn’t help you shop for group health insurance every year, you should find one who will walk you through your options, so you can see every single option from every carrier to compare their offerings and their rates.
Sometimes it makes sense to pivot, and sometimes it makes sense to stay put. It really depends on your individual company and your risk pool.
Group Health Insurance Mistake #2: Not Offering New Options
In addition to not shopping for business health insurance, another mistake employers make is staying with the same insurance year over year, without considering new options that could meet employees’ current needs. For example, if there’s a significant increase in insurance costs, instead of just forcing employees to keep their same plan at a higher cost, an alternative would be to offer a new option that’s going to be at a similar cost to what they were paying, but that provides a little bit less in benefits.
At AZ Health Insurance Brokers, we recommend to put yourself in the shoes of your employees, so that you can make better decisions from an employee-centric point-of-view. Employers can survey employees about their thoughts on their current insurance plans and what would make them better, which is valuable information employers can use when they’re shopping for insurance. Knowing what employees want can also help businesses better position their insurance offerings when they’re trying to hire new talent.
We also recommend that employers consider budgeting for a health insurance expense increase each year. Generally, there will be between a 7% and 9% annual increase for 2025 to 2026 renewals, according to current data. If you can plan this increase in your annual budgets, you’ll be better able to maintain health insurance plans employees want without a surprise increase.
Group Health Insurance Mistake #3: Not Looking at All the Details
Finally, the third major mistake we see business owners make at renewal time is not looking at all the granular details of plans, from health insurance to dental insurance. A trusted business insurance broker can do this for you and explain details and changes quickly and clearly, which may be easier than sifting through the fine print yourself.
Why is it important to review all insurance plan terms? It’s really important to look at all the variables in an insurance plan because insurance is more than deductibles, out-of-pocket maximums and coinsurance. You need to look at factors like doctors networks, the prescription drug formulary, how emergency room visits are covered and how major diagnostics are covered.
You don’t want your staff to be blindsided by an oversight. For example, an ER copayment on a previous plan could pivot to a deductible coinsurance on a new plan. That could result in unexpected expenses for your employees, and major stress and hassle that impacts your business operations.
Top 3 Mistakes at Group Health Insurance Renewal Time
| 1. Not Shopping Insurance | 2. Not Offering New Options | 3. Not Looking at All the Details |
|---|---|---|
| Carriers go through cycles based on market share. | Amid annual premium increases ranging from 7% to 9%, there may be options to offer health insurance plans to employees that are the same price, but that offer slightly fewer benefits. | It’s important for business owners to look over all the granular details of every plan, including dental insurance terms. |
| It’s free to shop health insurance through AZ Health Insurance Brokers. | Businesses can survey employees to gather their thoughts about how their plans can be improved upon. | Working with a trusted health insurance broker, you can ensure nothing gets missed in the fine print. |
| Shopping health insurance is especially important for businesses with at least 10 employees. | Businesses that fail to consider new options may risk decreasing employee sentiment due to surprise increases. | Analyze health insurance details including deductibles, out-of-pocket maximums, coinsurance, doctors networks, the prescription drug formulary, how emergency room visits are covered and how major diagnostics are covered. |
| Your individual company and risk pool will determine whether it makes sense to stay put or pivot. | Make sure to factor health insurance premium increases into your 2026 budget, so you can better maintain the healthcare coverage employees want. | Use analysis of details from group health insurance plans you’re covering to choose the best plan as you shop and compare options. |
Group Health Insurance Renewal in 2026: What Arizona Employers Should Expect
Every state is different when it comes to group health insurance options, and Arizona has some unique considerations. Be aware that:
- Banner|Aetna is discontinuing the brand’s federal Affordable Care Act (ACA) Marketplace offering in Arizona, with its last day on December 31, 2025. This might impact some groups, who will need to find a new employee health insurer in order to provide coverage in 2026.
- UnitedHealth’s digital-focused Surest product is experiencing tremendous growth in employer insurance popularity in Arizona. Surest is a copay-only health insurance product that, according to the brand, can lower employer costs by up to 15% when employees choose lower-cost care. We’ve seen Surest in action in Arizona, helping one business with 80 employees reduce overall claim utilization by 10% in just a few months in 2025.
- In 2026, Blue Cross Blue Shield (BCBS) of Arizona will remain the only statewide ACA Marketplace carrier. BCBS of AZ is the only Arizona health insurance provider that offers a statewide preferred provider organization (PPO) plan that’s available in all 15 counties.
It’s also important to be mindful that group health insurance premiums in 2026 will likely rise due to medical inflation. With carrier changes, such as the Banner|Aetna exit and more interest in Surest and level funded health plans, it’s always important to shop group health insurance every renewal cycle to ensure you’re getting the best provider for your business.
Have a question about the best group health insurance provider in Arizona for your unique business? Contact AZ Health Insurance Brokers for a free consultation.
Avoid These Group Health Insurance Renewal Mistakes: Contact AZ Health Insurance Brokers
Since health insurance consistently ranks as one of the top employer-offered benefits to workers, it’s important that employers work with a trusted health insurance provider who can help them select the best coverage for their employees. Simply renewing the same plan every year may not make sense for your workforce, as plan details, prices and other factors are always subject to change. In some cases, as with the exit of Banner|Aetna from the ACA Marketplace in Arizona in 2026, you may need to change your group health insurance offering.
When you choose AZ Health Insurance Brokers as your group health insurance partner, you can be assured we’ll:
- Shop all current insurance plans and present you with relevant options to consider.
- Walk you through any price increases and explain how you can make plans that are in your budget work for your workforce.
- Alert you to any changes and all term details that could impact your business and health insurance selection.
If you want to start offering group health insurance to your employees, or you already are, and you want to make sure you’re offering the best plan at your business, call AZ Health Insurance Brokers. We offer free consultations for business owners and look forward to helping you.
Contact us online, call 602.617.4107 or email quotes@azhealthinsuracebrokers.com for information.
Business Health Insurance Renewal FAQs
How often do you have to renew group business health insurance?
Business owners typically have the option to renew, amend or change their group health insurance plan every year. Check with your plan provider about upcoming deadlines.
What are the most common mistakes business owners make with group insurance renewal?
The top three mistakes we see at renewal time for business insurance are: 1) not shopping for group insurance; 2) not offering new business health insurance options; and 3) not looking at all the details of a group health insurance plan.
Why should business owners shop health insurance each year?
Business owners should shop for group health insurance every year because the current plan may not be the best fit for employee needs. You could also get a discount on a similar plan from another health insurance carrier, or you might find a better insurance fit based on your risk pool.
How do you know which health insurance plan is best for employees?
One way to learn about the best health insurance plan for employees is to survey them each year. Ask what their thoughts on their current insurance plan are and what could make it better. You can present your findings to a group health insurance broker, who can use it to find the best group insurance plans available based on your budget.
What’s the average business health insurance plan annual increase?
Generally, business owners can expect between a 7% and 9% annual increase on group insurance costs. It’s helpful to budget for these increases, or look into getting lower-cost plans if they fit your workforce.
What is the top workplace benefit employees seek?
A 2025 “Forbes” report found health insurance is the top workplace benefit employees want in a job. More than two-thirds of workers cited health insurance as the top employee benefit.
What is the top employee benefit, according to business owners?
Health insurance is the top employee benefit a business can offer, according to a 2025 “Forbes” report. More than two-thirds (68%) of business owners cited employer-covered healthcare as the top benefit that can be offered.
Does it cost money to change group health insurance providers?
It doesn’t cost any additional fees to change group health insurance providers during enrollment periods, when you work with AZ Health Insurance Brokers to help you do so. Navigating group health insurance is a free service high-quality health insurance brokers should offer, without charging extra fees.
What factors should you consider when choosing group health insurance?
Some group health insurance variables include risk pool, deductibles, out-of-pocket maximums, coinsurance, doctors networks, prescription drug formulary, emergency room visit coverage and major diagnostic coverage.
How can I keep the same group health insurance each year?
To prepare for annual increases while keeping the same group health insurance offerings for your employees, make sure to budget for an annual increase of 7% to 9% in group health insurance costs each year.
