As insurance costs get out of hand, challengers are plotting “the great health plan replacement.”
Public enemy. Rising 2x faster than inflation, the average premium is already up 78% since 2011, with per-employee costs projected to spike again next year. Accelerated by consolidation, a few conglomerates dominate the market while pocketing extra profits.
Resigned. Fed up, >20K employers opted for HRAs (Health Reimbursement Arrangements) like CHOICE Arrangements (fka ICHRA) over traditional coverage in 2026 — a 53% YoY jump.
Insurgents. Investors are pouring into alt providers, with unicorn Thatch’s $108M September raise including participation from leading VCs alongside ADP Ventures, Paychex, and Eli Lilly.
AI-native and made for small businesses, Angle Health hit a $2.7B valuation last month, while Bain Capital led Corridor’s $25M seed. Also closed in September, Nara Health announced $14M from backers including Khosla Ventures and Long Journey Ventures. Adding ~1M members last year, Oscar Health is gaining steam, as Alan and Costco make moves.
Looking ahead: Aligning with the DTC care landscape, startups want to rebuild health benefits around individual choice — forcing companies to adopt fair practices or lose paying customers.
We break down how fitness, wellness, and healthcare are converging — and what it means for business, culture, and capital.
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