Urgency of Rising Employer Health Costs
Rising Employer Costs

Urgency of Rising Employer Health Costs

Anticipated 5.8% Increase In 2025 Employer Health Insurance Costs

Consulting firm Mercer found in a recent study a higher-than-normal increase in employer health costs for 2025 being driven by:

  • Higher use of medical care by employees, especially for behavioral health services
  • Increasing costs that providers charge for their services due to worker shortages
  • Expensive drugs such as weight loss GLP-1 medications

Mercer also found that 53% of employers plan to implement cost-management programs in 2025.. The year 2025 is anticipated to be the third consecutive year in which healthcare costs for employers have risen by more than 5%.

Example Programs to Reduce Employer Health Costs

  • Predictive analytics for employees trending to be costly (chronic conditions) in the future to turn the focus to preventive services for this group
  • Wellness program participation tied to employee premium deduction.
  • Supplemented fitness programs
  • Increase availability of nutrition programs
  • Partner with local ACOs to offer telemedicine encounters
  • Educate employees on costs of services and best alternatives for cost-effective care
  • Extra mental health days off

Medicare ACO Experience

Provider participants in Medicare ACOs, experienced with cost reduction and improving health outcomes, have a great opportunity to partner with employers via direct contracting to offer health and wellness programs.

Direct contracting is a contract between an employer and provider for specific health and wellness services to be delivered in a cost-effective manner by providers to their employees with goal of reducing costs and improving health outcomes.

Kris Gates, [email protected]


Health Endeavors


Nancy Sarpi

Student at Mayfield Education

2 个月

Love this & I agree!

Keith G.

Program Manager. Helping businesses with last Covid program available under the cares Act/ Cafeteria Plan 125 -saving business owners up 680 per employee

2 个月

Hi Everyone , a great way to offset the cost of the increase in Health Insurance is to obtain a IRS Section 125 Cafeteria Plan , Net Zero Cost . This prgram works alongside your existing Health insurance plans , or even if you dont have Health Insurance for your employees . Employers can receive 680 per employee and employees will see an increase in their pay . Programs requires 5 or more employees making 30k or more . Message me or call me at 732-629-9730 to set up No Cost , No Obligation review .

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