2026 MARKET TRENDS

Student Health

Key Takeaways

With average rate increases reaching 9% over the last three years and high trends expected for 2026, institutions are relying on data-driven decision-making to mitigate escalating costs
Universities are prioritizing cost containment by leveraging telehealth solutions, even as they face pressure to improve plan value and maintain comprehensive coverage
Significant variations in benefits and pricing across states create obstacles for institutions striving to provide equitable health coverage to a diverse, nationwide student body

Student well-being, especially mental health, remains a top concern as higher education institutions navigate the challenges of rising health plan costs.

Overview

Student well-being, especially mental health, remains a top concern as higher education institutions navigate the challenges of rising health plan costs. According to recent student health survey data:1

Nearly 90% of participating institutions indicated that improving plan value for students was second only to managing costs
Approximately one-third of institutions made changes to medical plans by increasing deductibles, copays and out-of-pocket limits
Fifteen percent of institutions adjusted pharmacy benefits, focusing on greater member cost share for non-formulary and specialty drugs
Dental and vision benefits continue to be offered, primarily as voluntary options rather than being included in bundled medical plans

Financial Pressures and Strategic Adaptations

Colleges and universities face considerable difficulty in providing comprehensive, affordable health coverage amid increasingly limited budgets. Over the past year, many have relied on experienced brokers to negotiate competitive rates and identify solutions that balance risk management with cost control. Adoption of cost-effective healthcare models, such as telehealth and virtual care programs, has expanded. Maintaining dental and vision benefits, even as standalone voluntary plans, reflects a continued commitment to overall student health.

Inconsistent Coverage Challenges

Achieving equity in student coverage is complicated by significant variation in plan terms, benefits and pricing across different states. Inconsistencies in offerings challenge both administration and student access to comprehensive care, underscoring the importance of addressing disparities wherever possible.

When determining benefit design and pricing, carriers and institutions should consider several key factors. These strategies will help universities maintain the value and sustainability of their student health plans in a dynamic and challenging market environment.

A high proportion of international students is typically favorable for underwriting, as these populations often demonstrate lower utilization rates
Maintaining a healthy student body with a positive claims history supports favorable plan pricing and risk profiles
Pursue high-performance or regional networks and focus on managing high-cost specialty drugs to control expenditures
Robust analysis of claims utilization enables institutions to monitor costs and trend drivers — most institutions now prioritize data-driven decisions, second only to supporting mental health
There’s an unmet need in evaluating self funding for new business, and a hard waiver process can help manage costs further
Virtual care, including expanded behavioral health access, aims to improve student well-being and deliver services more efficiently

1Risk Strategies, Part of the Brown & Brown Team. Student Health Insurance Nationwide Benchmark Report, 2025.

Escalating Rate Trends Health plan rate increases remain a concern. The average annual rate increases over the past three years have been 5%, 7% and 9%. Current projections from Brown & Brown indicate that this upward trajectory is likely to persist into 2026.

Careful monitoring and data-driven analysis are crucial for understanding and mitigating the underlying drivers of these cost escalations.

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