Healthcare costs at a post-pandemic high, US employers prioritize affordability and wellbeing

Core Insights - The rising cost of healthcare in the U.S. is at a record high since the COVID-19 pandemic, with nearly half of employers expecting costs to exceed budget projections this year [1] - Employers are adopting various strategies to manage healthcare affordability while maintaining employee wellbeing, focusing on competitive and cost-effective plan designs [1] Healthcare Cost Projections - U.S. employers project a 7.7% increase in healthcare costs for 2025, up from 6.9% in 2024 and 6.5% in 2023 [2] - Over half of employers (52%) plan to implement programs aimed at reducing total costs, while 51% intend to adopt strategies that direct employees to lower-cost, higher-quality providers [2] Cost Management Strategies - Only 34% of employers expect to shift costs to employees through premium contributions, and just 20% will promote account-based health plans or high-deductible health plans [2] - Employers are exploring alternative drug channels and pricing, with 21% planning to promote drug discount cards or direct-to-consumer prescription delivery [3] Proactive Efforts - Other cost control measures include taking vendor/health plans out to bid (43%), evaluating mental health programs (38%), and exploring narrow networks (30%) [4] - 54% of employers are looking into technology solutions that provide price and quality information to members [4] Focus Areas for Employee Wellbeing - Top focus areas for employers include obesity and weight management (40%), cancer and oncology (34%), cardiovascular health (28%), and women's health (27%) [5] Coverage for Medications - Employers are maintaining coverage for obesity medications with restrictions, citing cost and safety as barriers for those not offering coverage [6] - 48% of employers are interested in lower-cost alternatives like compounded GLP-1 medications [6] AI Opportunities - Employers see significant opportunities for artificial intelligence in health and benefits, particularly in navigation solutions (64%) and communication (58%) [7] Fertility Services Coverage - More than two-thirds (67%) of employers provide coverage for fertility services beyond infertility diagnosis, including in vitro fertilization [8] Pharmacy Benefits Management - 73% of employers plan to carve out pharmacy benefits in the coming years, with 27% considering smaller PBMs offering alternate pricing models [8] Survey Participation - The survey included 417 employers, representing a workforce of 6 million employees [9]