Rate Hikes on the Horizon for Company Health Insurance Plans

The government announces a reduction in health insurance reimbursements: premiums for company-sponsored health plans will rise again
 

The government has just announced a reduction in the reimbursement rates for medical visits under the national health insurance program, which will increase the portion covered by supplemental health insurance plans. Starting next January, premiums for employer-sponsored health insurance plans are expected to rise by 6 to 10 percent, depending on the provider. To avoid this increase, more and more companies are thoroughly reviewing their existing contracts. The goal is to ensure that the coverage offered to their employees is fully utilized and to encourage competition among providers.
 

For supplemental health insurance plans, the bill is set to be steep: the government has announced that the CPAM (Caisse Primaire d'Assurance Maladie) will reduce the reimbursement rate for doctor’s visits. The portion reimbursed by supplemental health insurance providers, currently 30 percent, could rise to 40 percent. 

Supplemental health insurance providers, which had already announced increases of 6% to 10% for 2025, will likely reassess their rates again, after having already raised them by an average of 10% in 2024. In total, these rates have skyrocketed by nearly 50% since 2018, and this trend is expected to continue. Health insurance already accounts for 5% of companies’ payroll costs.
 

In this context, companies are taking a closer look at their health insurance plans, especially as the year draws to a close and before the rate increases take effect next January. On average, coverage is 15% too expensive relative to employees’ needs.
 

“We’re seeing a sharp increase in this type of request from companies,” notes Catherine Colombie, director of Social Protection and a partner at the HR consulting firm Spartes. “And every time, we reach the same conclusion: on average, they’re overpaying by 15% compared to what employees actually use. To avoid overpaying without reducing the protection offered to employees, there’s only one solution: analyze the gap between each benefit paid and each employee’s actual usage.”
 

In fact, it is common for employees not to take advantage of certain benefits offered by their health insurance plan. For example, many employees primarily see doctors who are part of the public health system and therefore do not use the coverage for out-of-pocket fees, even though it is offered by their health insurance plan. Similarly, it is common for single employees without children to be covered under a “family” plan: this coverage is unnecessary but adds to the company’s costs and also to employees’ paychecks, since supplemental health insurance is jointly funded by employers and employees.
 

“That is why this issue must be part of the discussions with the social partners,” Catherine Colombie continues. “Increases in health insurance premiums affect all stakeholders, so they must work together to determine how to contain these costs. After reviewing the coverage options and whether or not employees are utilizing them, the goal is to design a coverage plan that is as personalized as possible and to agree on preventive health measures to be implemented within the company. Health insurance is one of the topics that must be addressed during the NAO (Mandatory Annual Negotiations), just like wages. It is important to give it the time and attention it deserves.”
 

Challenge Your Provider and Encourage Competition
More and more companies are making it a habit to renegotiate their contracts with their supplemental health insurance providers. In particular, they are questioning intermediary and administrative fees, which are often calculated in a non-transparent manner. Or to propose adjustments to coverage: for example, eyewear costs can be significantly reduced if a partnership is established with a specific optical network at pre-negotiated rates.
 

“When appropriate, we solicit bids from several health insurance providers and assist our clients in switching providers,” Catherine Colombie continues. “In the past, we’ve seen many companies stick with the same health insurance provider for several years, thereby missing out on substantial savings. Today, they’re taking a much more proactive approach and asking us to regularly compare offers so they don’t have to accept these rate hikes as inevitable.”
 

This issue is also crucial in terms of employer branding: today, 79% of employees consider the measures a company implements to support their health to be a decisive factor. This is all the more reason to tailor and customize these measures and the benefits offered, thereby strengthening team engagement.