As we approach 2025, employers are bracing for significant increases in healthcare costs driven by several factors, including soaring prescription drug expenses, inflation and worsening chronic health conditions among employees.Scott Insurance’s recent Milliman Benefits Benchmarking survey offered key insights into these trends.While the commercial health insurance market continues to experience increasing pricing pressure, there are strategies employers can deploy to mitigate costs and manage their health plans effectively.

The rising cost of healthcare The Milliman survey indicates that the healthcare cost trend is projected to rise 6-11% in 2025, up from 5-10% in 2024.Since 2017, actual healthcare costs have skyrocketed by 50%, creating a pressing concern for employers and employees alike.Ellen Kelsay, CEO of the Business Group, attributes this jump in large part to rising prescription costs driven by a sharp increase in utilization for specialty medications.

The survey included responses from 156 VA-based employers, representing 60,000 workers.While the majority of employers intend to shield their employees from major cost increases, they are exploring various cost-management strategies to mitigate the impact.Key findings from the survey Proactive strategies for employers In light of these challenges, employers should consider the following strategies: As healthcare costs continue to rise, employers must remain proactive in their approach to managing these expenses.

By staying informed about trends and adopting strategic measures, businesses can foster a healthier workforce while navigating the complexities of rising healthcare costs.A knowledgeable benefits consultant can help you tackle these challenges and find solutions that work for your organization and your employees.