In Spokane and across Eastern Washington, health care affordability is no longer a future concern. It's already shaping decisions that local employers are making today about jobs, growth, and compensation. 

National data backs that up. According to the U.S. Bureau of Labor Statistics, health care inflation has consistently grown faster than overall inflation, with hospital inflation running at nearly double the overall Consumer Price Index. While most goods and services have followed more predictable inflation patterns, health care has not. That gap matters, because when one part of the economy grows that far out of step with everything else, employers and workers absorb the consequences. 

Nowhere is that more visible than in employer-sponsored health coverage. 

Many businesses are heading into another renewal cycle, bracing for steep increases. As reported by the Spokane Journal of Business, employer-sponsored health coverage is expected to rise about 10% in 2026, with some employers facing renewal hikes as high as 60%. For small- and mid-sized employers in our region, increases of that magnitude are not just difficult. They are destabilizing. 

When health care costs rise that quickly, employers are forced into real trade-offs. Dollars that could go toward wages, hiring, equipment, or expansion are redirected to covering benefits. Even well-run companies committed to their workforce are left deciding how much cost they can absorb and how much must be passed on.

Employees feel it too. Higher deductibles, higher out-of-pocket costs, and slower wage growth all make it harder for families to feel secure, even when they have coverage.

Over time, those pressures affect retention, morale, and a company’s ability to compete for talent in a tight labor market. 

Previous reporting reflects what Spokane-area employers are seeing firsthand: rising costs driven by specialty drugs, delayed care, chronic disease, and workforce shortages. Those factors are real, and they deserve attention. But focusing only on premiums misses a bigger issue that business leaders understand well. Prices do not rise on their own.

Premiums are a reflection of the underlying cost of care, and one of the largest drivers of that cost is hospital services. National data by health policy organization KFF consistently shows hospital care accounts for a significant share of health care spending and recent cost growth. When hospital prices increase, those costs flow directly into employer-sponsored plans and into the balance sheets of local businesses.

Consolidation is another pressure point. As independent physician practices and clinics are absorbed into large health systems, prices tend to rise. In Eastern Washington, where provider options can already be limited, consolidation can reduce competition and leave employers with fewer affordable choices.

There is also a business-critical issue that often gets overlooked: where care is delivered.

The same test, scan, or outpatient procedure can cost significantly more depending on the setting. Services provided in hospital outpatient departments often come with much higher price tags than when the same care is delivered in a physician’s office or ambulatory surgery center, even when quality and outcomes are comparable.

Those differences matter to employers. When higher-cost settings become the default, the added expense does not disappear. It shows up later in renewal rates, employee contributions, and benefit design changes that affect the entire workforce.

At the same time, Eastern Washington faces real access challenges, particularly in rural communities. Employers see the impact when workers delay care because it's hard to find a provider or get an appointment. Delayed care often becomes more complex and more expensive care, further driving up costs for plans and employers. 

Improving access and improving affordability are not competing priorities. For businesses, both are essential. A healthier workforce and a more affordable system support productivity, stability, and long-term economic growth. 

So what does this mean for Spokane’s business community? 

First, we need to stay focused on the true drivers of cost, not just the symptoms. Greater transparency can help employers and employees better understand prices before care is delivered, allowing for more informed decisions.

Second, we should support high-quality care in lower-cost settings when appropriate.

Giving employees access to effective care outside the most expensive environments can help control costs while maintaining quality.

Third, continued investment in the health care workforce and in care models that address chronic disease earlier is critical. Health does not improve overnight, but long-term affordability depends on sustained, coordinated action. 

Health care affordability is not a challenge any one employer, provider, or health plan can solve alone. But for Spokane-area businesses, the stakes are clear. 

If we want Eastern Washington to remain a place where companies can grow, hire, and compete, we have to address the underlying cost of care. The pressure is already here.  

The question is whether we are willing to focus on the changes that will actually make a difference for our regional economy.

Umar Farooq is executive vice president of Healthcare Services at Premera Blue Cross, leading the company’s strategies for provider network development, value-based contracting, clinical solutions, and health care quality. He also serves on the board for Washington Health Alliance.