Health Care Costs Due to Rise in 2025

As we approach 2025, the healthcare landscape continues to evolve, presenting both challenges and opportunities for benefits brokers. With projected increases in health care costs, it’s crucial for brokers to stay informed and proactive in their strategies to support their employer groups as well as the employees. 

Current Trends in Healthcare Costs

According to the latest annual health care strategy survey conducted by the Business Group on Health which included 125 employers, a 7.8% increase is anticipated for their healthcare costs for 2025. This trend underscores the growing financial pressures facing organizations as they strive to provide comprehensive benefits. 

One significant driver of these rising costs is the increasing use of weight loss medications, such as Ozempic or Zepbound. These drugs have seen a surge in popularity, particularly for their effectiveness in managing obesity even though their initial intent was to treat type 2 diabetes. As more employees seek effective weight management solutions, employers may see substantial shifts in their healthcare spending. It’s important for brokers to consider how these trends will impact overall costs and health outcomes. 

In addition to weight loss drugs, high-cost therapies have become a massive contributor to the rising health care expenses as well. Specialty medications and advanced treatments often come with hefty price tags, further straining employer budgets. With new therapies, such as cell and gene and chimeric antigen receptor T-cell (CAR-T) therapies, expected to enter the market in 2025, managing these costs will be a critical concern for benefits professionals. Ongoing legislative efforts aimed at reducing these costs mean that brokers must stay abreast of developments and explore innovative solutions to manage prescription expenses effectively. 

Strategies for Benefits Brokers

To navigate the rising health care costs of 2025, brokers should prioritize innovative cost management solutions. This includes exploring creative approaches to reduce prescription drug costs—which, for PBMs, can mean negotiating with pharmaceutical companies. 

Utilizing benefits administration platforms like BerniePortal can facilitate discussions by providing data-driven insights into benefits utilization. Understanding which benefits employees are using and why they may be waiving certain options can be invaluable when planning benefits offerings for 2025. By identifying what employees want and what they are unlikely to utilize, employers can reduce overall costs by eliminating unnecessary expenses.

Clear communication with employees about their health benefits is essential. According to ASSPA, 45% of employees report that they do not fully understand all aspects of their benefits package. Furthermore, 16% of employees regret their elections, and among those, 60% attribute their regret to a lack of understanding and information. As their broker, you can help mitigate this issue by engaging in conversations with employees prior to open enrollment, ensuring they have the necessary information to make informed decisions.

By staying informed about emerging health care trends and the factors influencing costs, brokers can better equip their employer groups to navigate the challenges of 2025. Proactive engagement and tailored strategies will be essential in helping employers manage expenses while meeting the needs of their employees.

Additional Resources: 

• Brokers’ Corner Podcast—watch and subscribe to the Brokers’ Corner podcast, which dives into the topics that affect your agency and industry and identifies strategies so you can protect and grow your book of business 
• BerniePortal Brokers’ Council—a council of benefits brokers from across the country that advises BerniePortal on industry concerns, trends, and the ways technology can best support their agency and employer groups 
• BerniePortal for Brokers—leveraging technology to increase your agency valuation and support your employer groups is easier than ever with BerniePortal’s software solution, built for brokers by brokers