Employers are increasingly enhancing health benefits in response to the rising costs of medical care.

Anticipated Growth in Medical Costs

A survey shows that employers are expecting a medical cost increase of over 5% in 2025, marking the third consecutive year of anticipated growth.

Rising Prescription Drug Expenses

Prescription drug expenses, particularly for GLP-1 medications used for diabetes management, are the fastest-growing segment of employer spending.

Coverage for Obesity Treatment

While coverage for GLP-1 medications for diabetes is common, coverage for obesity treatment is less common but increasing. In 2024, 44% of large employers provided coverage for obesity treatment, up from 41% in the previous year. Among jumbo employers, the figure rose to 64%, up from 53% in 2023.

Efficient Utilization of Medications

Employers are also implementing authorization requirements to ensure effective utilization of these medications.

Clinical Management Programs for Specialty Drugs

To manage costs, employers are collaborating with manufacturers and pharmacy benefit managers to develop clinical management programs for specialty drugs.

Diversification of Health Plan Offerings

Employers are diversifying their health plan offerings, with 65% of large employers providing at least three different plan options. Exclusive provider organization (EPO) plans, which feature closed provider networks and no deductibles, are gaining traction. In 2024, 12% of large employers and 29% of jumbo employers introduced EPO options. Additionally, 40% of EPO plans incorporate high-performance networks, selecting providers based on quality and cost metrics.

Focus on Family Planning Benefits

Employers are placing a significant emphasis on family planning benefits, with 47% of large employers covering in vitro fertilization (IVF) services. Among jumbo firms, the coverage rate for IVF services reaches 70%. Furthermore, 64% of employers offering IVF coverage extend this benefit to individuals who do not meet the clinical definition of infertility.

Enhancing Support for Cancer Patients

Employers are also enhancing support for cancer patients through various initiatives, with two-thirds of large employers implementing at least one strategy targeting cancer care.

Comprehensive and Inclusive Health Offerings

The focus on enhancing benefits in critical areas such as family planning and cancer care reflects a strategic shift towards more comprehensive and inclusive health offerings. Employers recognize the importance of supporting employees' diverse health needs in an increasingly challenging economic landscape.