August 20, 2024

Expanded Initiatives Focus on Controlling Costs and Addressing Access, Quality and Experience

In 2025, high-cost claims will be the top area of new and expanding initiatives. Interestingly, that top spot has been held by mental health access for the past few years. Many of the top initiatives seen in Figure 8.1 are undergoing expansion rather than being implemented for the first time in 2025. This trend may indicate, despite the pressure of rising costs, employers are doubling down on holistic initiatives to meet the needs of the workforce and organization.

As many employers see their health care budgets climbing, some are resorting to alternative health plans; in fact, 14% will implement one in 2025. In addition, 13% of employers will implement new programs to address the affordability of prescription medications. All in all, employers’ main focus will be on how to lower costs – and uncovering ways to get there.

Top Priorities

Given the dramatic increases in health care cost trend, including escalating pharmacy expenditures, it’s no surprise that 53% of employers are now focusing on health care cost as their highest priority for 2025, followed by affordability for the organization and employee experience (Figure 1.1). They are working to accomplish these goals by taking a comprehensive look at the quality of their partnerships, the value of the services delivered by their partners, transparency of data shared and their partners' accountability as fiduciaries. At the same time, employers are determined to continue providing well-rounded health and well-being benefit packages, supported by a health care strategy grounded in achieving lower cost through the improvement of quality and experience. The next 3 years will be telling of employers’ ability to keep costs low while remaining competitive for talent and persisting in a highly inflationary global environment.

More Topics

Resource Cost Management Health Conditions and Risk Factors