How to Effectively Communicate a Letter to Employees Regarding Health Insurance Increase

Hey there, folks!

I hope this message finds you all well and in good health. Today, we’ve got some important news to share with you all – as you may have heard already, the cost of health insurance has gone up significantly in recent times. As a result, we regret to inform you that our organization’s health insurance premiums will also be increasing for the upcoming year.

We understand that this increase may come as an unwelcome surprise to some, especially in the midst of all the challenges that have come our way recently. However, we want to assure you that we’re doing everything in our power to minimize the impact of this change on our valuable employees.

As always, we’ve prepared a detailed letter for you explaining the changes and providing you with all the necessary information and resources you may need to make informed decisions regarding your health insurance. You’ll also find some examples and tips in our letter to help you navigate this process.

We encourage you all to take a close look at this letter and make any necessary edits or adjustments to better fit your individual needs and preferences. Our goal is to support you all in any way we can, and we hope that this message will help to clarify any concerns you may have.

Thank you for your continued dedication and hard work, and stay safe out there!

Letter to Employees Regarding Health Insurance Increase

Hey there team,

We wanted to give you a heads up about some changes to our health insurance policy. Effective next month, there will be an increase in the premiums for our company’s health insurance plans.

First off, we want to apologize for any inconvenience this may cause. We understand that health insurance is an important benefit for many of our employees and we do not take this decision lightly. Unfortunately, due to rising healthcare costs, it has become necessary to adjust our rates.

We know that this news may be met with some frustration, but we want to reassure you that we are doing everything we can to keep our coverage as comprehensive as possible. Our insurance brokers have worked hard to negotiate the best rates for our company and we will continue to make every effort to provide you with the best coverage possible.

If you have any questions or concerns about your coverage or the increase in premiums, please do not hesitate to reach out to our HR department. We are here to help and will do our best to ensure that you have all the information you need to make the best decisions for both yourself and your family.

Once again, we apologize for any inconvenience this may cause. We thank you for your understanding and your continued hard work and dedication to our company.

Best regards,

The Management Team

7 Sample Letters to Employees Regarding Health Insurance Increase

Sample Letter #1: Increased Medical Costs

Greetings valued Employees,

We want to inform you that we have decided to raise our health insurance premiums. The primary reason for this increase is due to the rising costs of medical care going up in every healthcare facility. Health insurance companies have to pay more money to cover the cost, which leads to us needing to make changes. We hope you understand the reasoning behind the price increase.

At the same time, we are exploring more cost-effective methods to control the costs so that we can make employee’s medical plans more affordable in the future. We appreciate your support in our endeavour to bring down insurance costs while still offering outstanding coverage.

Thank you,

[Your Company Name]

Sample Letter #2: Network Provider Changes

Dear Employees,

Please be informed that our firm has decided to change the network provider for our health insurance plan, which will result in price changes. This shift is intended to improve the quality of healthcare facilities, which we think is highly advantageous for the policyholders.

Since the new provider has formulated an enhanced advantage plan, their prices will be higher than the previous provider; therefore, our premiums will also increase. The new network provider will offer a more comprehensive range of medical services for our employees, contributing to their overall well-being.

We apologize to our employees for any inconvenience this change may cause and hope that you appreciate the improved quality of services that our new provider offers.

Best regards,

[Your Company Name]

Sample Letter #3: Insurance Policy Change

Dear Employees,

We are writing with news regarding our firm’s health insurance plan. Our policies reason for change is to maintain coverage throughout our employee’s lifestyle changes comprehensively, thus we advised an affordable rate increase. While we know any price change is not ideal, please understand that this step is vital to ensuring our staff members continue to receive excellent service.

Our insurance policy will now cover more services than before, such as an increase in our employee’s annual check-up for physical or mental health issues. We believe the addition of these services will be exceptionally beneficial and advantageous for our employees, allowing them to focus on their health, both physically and mentally.

We hope that you appreciate and enjoy the new benefits that come with these premium enhancements and remain committed to providing our employees with the best coverage we can afford. Thank you.


[Your Company Name]

Sample Letter #4: Increased Policy Limits

Dear staff members,

We understand that health insurance is crucial for many of our employees, and it is our responsibility to provide the best health insurance available. Therefore, we have decided to increase our policy limits to offer better protection and coverage for our employees.

With more extensive policy coverage comes an increase in our health insurance premiums. Our new policies will cover additional services like hospitalization, surgeries, and other treatments. This increase in our policy limit aims to help our employees during their medical emergencies and ease financial pressures.

We know that this price increase may seem significant to some, but our primary goal is to provide the best health insurance coverage available for our employees. So we ask for your understanding in this matter.


[Your Company Name]

Sample Letter #5: Rising Overhead Expenses

Dear Employees,

We regret to inform you that the overhead expenses for our healthcare benefit plan have increased, resulting in a necessary rise in premiums. Although we know this may be a difficult decision for some of our employees, we believe it is important to maintain the coverage and benefits adequately.

To make a strong and economically sustainable cover, we need to keep up to date with all expenses and put measures in place to cover these costs. Consequently, due to overhead expenses, we have decided on the increase to our employees’ health insurance premiums. The coverage will still include the same range of treatments, but we have increased the payout threshold to cover more of the dental, vision, and hearing expense claims added in our new package.

We sincerely apologize for any inconvenience and ask for your understanding during this difficult time period.


[Your Company Name]

Sample Letter #6: Governmentally Supported Increases

To our dedicated Employees,

As you may already be aware, there have been some changes in our healthcare policy that have impacted our premium rates. We want to inform you that we have no control over these changes as it is the government or other outside structures’ decision.

The upward adjustment is mainly determined by policy rates changes introduced by local/federal authorities. The increases will ensure our employees receive the same benefits and more from our coverage, such as vaccines, ongoing support, and additional medication. Therefore, we have to increase our premiums to provide our standard service and to meet these conditions.

We regret the inconvenience this may cause, and we strive to continually provide you with the healthcare coverage you deserve.


[Your Company Name]

Sample Letter #7: New Purchaser Adds Price Increase

Dear Employees,

We want to inform you that premiums for our health insurance have increased. As a consequence of adding to our healthcare plan, new purchasers have come in with a substantial price increase in our premiums. Our current provider has imposed significant surcharges, which ultimately lead to overall cost increases to our policyholders.

We understand that recent changes may be a source of concern for some members. We want to ensure you that we are taking the necessary steps to improve coverage and quality care for our employees. Our management team is currently exploring all options to make sure that we maintain our excellent healthcare services and provide quality coverage for our personnel.

We appreciate your understanding, and we aim to keep all policyholders informed of any changes

Thank you,

[Your Company Name]

Tips for Writing a Letter to Employees Regarding Health Insurance Increase

Health insurance is a crucial benefit that you offer your employees. It helps them to access quality healthcare services when they need it the most. However, sometimes you may need to increase your health insurance rates due to various reasons such as rising medical costs, changes in the healthcare market, or changes in your business situation. Whatever the reason, it is essential to communicate this decision to your employees in a clear and concise manner to avoid any misunderstandings. Here are some tips for writing a letter to your employees regarding a health insurance increase.

Be Transparent: When writing the letter, it is essential to be transparent about why your insurance rates are increasing. Your employees will appreciate your honesty and are less likely to feel blindsided or misled. Explain the reason for the rate increase and what steps you are taking to mitigate the impact on your employees.

Be Clear and Concise: Use simple language and avoid technical jargon or HR terms that your employees may not understand. Explain the change and how it will affect the premiums and out-of-pocket costs. If possible, provide examples of how much more employees will need to pay, so they understand the impact on their paychecks.

Provide Options: It is essential to offer options to your employees to help them manage the changes in insurance rates. For example, you may offer a range of plan coverage options, including high deductible plans, to keep premiums affordable. You can also encourage employees to explore other health insurance options and compare them with yours, so they can make informed decisions that work best for them.

Reassure Employees: It is understandable that your employees may be anxious or worried about the increase in health insurance rates. As such, it is essential to reassure them that you value their health and well-being and are committed to making health insurance available and affordable for them. Encourage them to reach out to HR if they have any questions or concerns.


Writing a letter to your employees about a health insurance increase can be challenging. However, with these tips, you can craft a communication that is transparent, clear, and reassuring. Remember to provide options to your employees and encourage them to explore other coverage options if needed. With open and honest communication, you can maintain a healthy and positive relationship with your employees while navigating the changes in the healthcare market.

FAQs about Health Insurance Increase

What is the reason behind the increase in health insurance premiums?

The increase in health insurance premiums is due to the rise in healthcare costs and inflation. In addition, we are offering more comprehensive coverage and benefits to our employees.

How much will my health insurance premium increase?

The exact percentage increase will depend on the type of plan you have and your individual circumstances. You will receive personalized information about the premium increases soon.

What if I cannot afford the new premium rates?

We understand that the increase may be difficult for some employees to manage. You can contact the HR department to discuss possible financial assistance or alternative plan options.

When will the new premium rates take effect?

The new premium rates will take effect from [date]. You will receive detailed information about the changes to your plan and how the new rates will affect you personally.

Will my coverage change with the increased premium rates?

There will be no significant changes to the coverage or benefits offered in your plan. You can still expect comprehensive coverage for a range of healthcare services and treatments.

Will I be able to change my plan due to the increased premium rates?

Yes, you can change your plan during the open enrollment period. You will receive more information about the open enrollment schedule and the available plans in due course.

How often can we expect premium hikes in the future?

We cannot predict the future rate of premium hikes, but we will always strive to keep our employee healthcare plans as affordable as possible while maintaining high-quality coverage.

Stay Healthy and Stay Positive

We understand that the news of health insurance increases might catch employees off guard. But don’t despair, your health and wellbeing are our utmost concern. We hope that our letter has provided clarity on the matter. If you have any questions or need further clarification, feel free to contact us. Thank you for taking the time to read our letter. Keep smiling, keep healthy, and keep doing great work. Drop by again for future updates from us!