With 42% of employers citing cost management as their top benefits priority in 2025 - and 72% saying employees are struggling more than ever to afford coverage - it’s clear that balancing budgets while supporting employees is a growing challenge. As another difficult renewal season appears imminent, innovative and sustainable cost-containment strategies are more important than ever.

2025 Final Medical Cost Increase
(after all plan design, carrier and network changes)
As reported by employers

Top Medical Plan Cost Drivers
As reported by employers

18%Pharmacy17%   Higher Utilization16%   Catastrophic Claims33%   Unsure

Employer Strategies & Actions

• 41% - Do not have a specific strategy to manage benefit costs to meet budget. Of those that do, adding a wellness program was the top response.
• 25% - Are implementing an alternative provider network such as a narrow network, tiered network, or direct primary care.

While 77% of employers feel their benefits offering meets the needs and expectations of their workforce, 69% indicated that structuring a competitive benefits program is more challenging today than it was two years ago. Controlling healthcare costs in the future will require plan sponsors to develop short and long-term plans, have access to claims data, and a willingness to insert advanced solutions.

Contact your Wells Insurance Employee Benefits Agent to discuss how this may affect you and your business.

Information provided by Assurex Global. Used with permission.