Have you felt a shift in the current health insurance market lately? Well, you’re not alone. People all over the country have been impacted by the rising cost of premiums while benefits continue to stagnate. Could there be a health insurance recession in Nevada? Signs are pointing to yes.
Premiums Up, Benefits Down
You’ve undoubtedly seen the rising costs of… everything lately. But it’s not contained to the grocery store. Prices everywhere have gone up, including for health insurance.
There are national issues with health insurance benefits going down, while premiums increase, leading to a health insurance recession in Nevada — and the rest of the country. Just like an economic recession, the current health insurance recession is caused by several compounding factors, including:
- Weakened economy
- Centers for Medicare & Medicaid Services (CMS) reimbursement cuts
- Delayed COVID claims
- Prescription utilization
- The Big Beautiful Bill
- Inflation Reduction Act
With everything going on in the world, healthcare providers and insurance carriers have been forced to provide less for more money, leading to the current health insurance recession in Nevada for both individual and family plan (IFP) markets, as well as employer-based plans.
Impacts on Individual and Family Health Insurance Plans
The individual and family market has been arguably impacted the most by the health insurance recession in Nevada, with some carriers even leaving area entirely! Aetna CVS announced that they wouldn’t offer any individual or family plan options in 2026 altogether.
And while Hometown Health continues to operate in the area, they have decided to discontinue their Preferred Provider Organization (PPO) plans, meaning there are officially no PPO options in Nevada going into 2026.
Carriers that decided to continue offering individual and family health insurance options are doing so at an increased rate. We’ve seen an average premium increase of 20-30% across most carriers.
Nevada Health Link subsidies may also be affected by recent legislation with the passing of the Big Beautiful Bill, but the full impact has yet to be seen.
While there is definitely change about — and not all of it good — there has been one positive in the IFP market, and that’s the introduction of the Battle Born State Plans. Battle Born State plans are public option IFPs from select insurance companies that may offer more affordable coverage for Nevada residents. It is uncertain what the true impact of these new plan offerings will have in the market. It will most likely take a few years to understand the pros, cons, and affects.
Impacts on Employer-Based Health Insurance Plans
Individual and family plans weren’t the only ones impacted by the healthcare recession in Nevada. Employer-based insurance plans have also seen changes.
In 2025, carriers raised their employer-based health insurance rates by 15-40%. But that doesn’t seem to be the end of the rate hikes. Because going into 2026, most carriers are increasing their rates even further by another 15-25%.
It seems that HMO plans are increasing at a lower rate compared to PPO plans. So if you’re an employer looking for more affordable coverage, it might be a good idea to consider HMO or EPO plan options. Standard Small Group plans may also be a good option if you’re seeing a high rate increase on your Association Health Plan or Level Funded plan.
However, more and more small group health plans are taking utilization or preexisting conditions into account when calculating rates. Carriers might not be able to deny coverage on preexisting conditions, but they can certainly increase your premiums for Association Health and Level Funded plans.
If your company is young and healthy, Association Health Plans and Level Funded plans are a great option. But if you’re concerned about preexisting conditions, a standard Small Group plan might be the way to go. Consult a local broker for more information on employer-based health insurance plans.
How Long Will the Health Insurance Recession in Nevada Last?
It’s certainly tough dealing with the impacts of the health insurance recession in Nevada, but unfortunately it doesn’t seem like there’s any immediate relief. Based on projections, this recession may last another 2-3 years.
There are currently some federal efforts to alleviate the impact, but they will take a few years to enact. This means insurance companies will have to offset the added risk by increasing rates higher than average.
We are officially in a health insurance recession. And the health insurance recession in Nevada isn’t just impacting individual and family and employer-based plans. The Medicare market is dealing with a recession as well. But hopefully 2026 will be the highest rate increase for the next decade.
What to Expect in 2026
Higher out-of-pocket costs for almost all insurance plans in the country, shrinking networks, and lessening benefits all seem to be on the menu for 2026.
To protect yourself from the health insurance recession in Nevada, it’s a good idea to check your doctors during open enrollment (November 1 to January 15) to make sure they’re still in-network and focus on medical access and networks first. Consider HSA-compatible health plans to keep premiums low with the benefit of contributing to a health savings account.
For more information about how to protect yourself during the current health insurance recession in Nevada, it’s always best to work with a local agent. The agents at Health Benefits Associates will listen to your needs and help you find a plan that works best for your budget. Schedule an appointment by calling 775-828-1216 today.