According to Mercer’s 2024 National Survey of Employer-sponsored Health Plans, U.S. employers expect health benefit costs to rise by 5.8% in 2025, marking the third consecutive year of over 5% increases. The growing costs are driven by a shortage of healthcare workers, rising demand for healthcare services, expensive behavioral health treatments, and GLP-1 medications. Smaller employers face steeper challenges, with anticipated increases of up to 9%. Prescription drug spending remains the fastest-growing factor, and many employers plan to implement cost-saving measures to manage the rising expenses. Click here for article.
Health benefit costs are projected to increase by 5.8% in 2025, marking three consecutive years of significant rises.
A shortage of healthcare workers, costly behavioral treatments, and expensive GLP-1 medications contribute to the rising costs.
Smaller employers may see health costs rise by 9% if no cost-saving actions are taken.
Prescription drug spending, driven by expensive therapies, is the fastest-growing factor in health benefit costs.
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