Anthem Blue Cross, one of California’s largest health insurers, has released updates for its 2026 large group and individual plan portfolio. Employers, brokers, and members should expect continued premium increases and important network adjustments that could affect access to care.
What’s Driving the Changes?
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Rising Healthcare Costs
Like other carriers, Anthem faces climbing hospital and prescription drug costs. These factors continue to push rates higher year-over-year. -
Provider Network Adjustments
Anthem is making changes to its statewide network, particularly in urban centers. Some hospitals and specialty groups may no longer be included in certain plans, requiring members to evaluate whether their preferred doctors are still covered. -
Focus on Digital Health
Anthem is expanding its telehealth services and introducing more virtual-first plans. These can lower costs but may require a shift in how members access routine and urgent care. -
Regulatory Pressures
With Covered California and state regulators pushing for affordability and quality improvements, Anthem is adjusting plan designs to comply—while still facing the challenge of rising expenses.
What Employers Should Know
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Budget Early: Premium increases for large group plans are expected to average between 8–11% in 2026, meaning employers must plan ahead to manage benefits spending.
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Check Networks: With adjustments to provider contracts, it’s critical to confirm if key hospitals and physicians remain in-network for employees.
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Communicate Changes: Employees often feel blindsided by premium hikes and network changes. Early communication is essential.
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Explore Cost-Sharing Models: Consider strategies like defined contribution, HSA-compatible plans, or supplemental benefits to ease the impact on employees.
Anthem’s Role in California’s Health Market
As one of the largest carriers in the state, Anthem plays a significant role in shaping California’s healthcare landscape. While their premium adjustments align with broader market trends, their network changes could have a larger impact given their wide footprint.
How BetterFit Benefits Can Help
At BetterFit Benefits, we specialize in guiding California employers and members through complex carrier changes. Whether it’s evaluating new Anthem plans, comparing options from other carriers, or designing a benefits strategy that balances cost and employee satisfaction, our team is here to help.