As he does every summer, Baton Rouge-based insurance broker Kerry Drake has started meeting with the local companies on his client list to talk about renewing their employee health plans.

This year, the conversations are especially difficult.

“We’re seeing renewals for 2026 at double-digit rate increases,” said Drake, an employee benefits consultant with Gallagher. “It’s going to be a very tough year."

Rising health care costs are nothing new. But a variety of factors — including inflation and pricey prescription drugs — have pushed them even higher over the past few years.

In 2025, the cost of health care is on target to rise about 8% over 2024, which was up 8% over 2023, according to industry estimates.

For employers, that means the year-over-year premium increases that are already

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