What You Need to Know to Build Your 2025 Benefits and Healthcare Strategy

Employers, with help from their benefits advisors, must develop data-driven, flexible, and tailored healthcare strategies to meet the changing needs of today’s workforce. Recent survey insights reveal key trends that can help guide the planning of a successful healthcare strategy.

Here’s what to keep in mind when designing your 2025 benefits and healthcare strategy for employees and their families:

No. 1: The Personalized Benefits Ecosystem

Employees increasingly expect benefits tailored to their unique needs and preferences. Research from LegalShield finds that 89% of employees desire benefits information tailored to demographics over standardized offerings. This shift underscores the importance of leveraging advanced analytics and employee feedback to design a benefits ecosystem that accommodates diverse demographics and lifestyles.

To address employees’ desire to customize their benefits package to fit their individual needs and lifestyles:

• Offer spending accounts for childcare, eldercare, and lifestyle expenses.
• Implement digital platforms that allow employees to customize their benefits packages.

No. 2: Improving Healthcare Affordability

Based on research from PwC, healthcare costs are projected to rise by 8% year-over-year in 2025 for the Group market, and affordability remains a top priority for employers and employees. To tackle these affordability concerns:

• Encourage participation in narrow networks and high-value care programs like Centers of Excellence (COEs).
• Expand access to virtual care options to reduce out-of-pocket costs.
• Explore alternative funding strategies, such as captives or self-funding.

No. 3: Work-life Integration Benefits

The line between work and personal life continues to blur, making integration-focused benefits more crucial. According to a 2024 Marsh McLennan Agency survey, almost 60% of respondents prioritize flexible work arrangements and support for family responsibilities.

To highlight employees’ high preference for flexibility:

• Offer flexible schedules and hybrid work models.
• Expand paid leave policies for parental and caregiving needs.
• Provide stipends for remote work equipment or home office upgrades.

No. 4: Mental Health as the Foundation

Mental health is no longer a supplemental benefit but a foundational one. Based on a 2022 American Psychological Association (APA) survey, 81% of U.S. workers say that employers' support for mental health is important when choosing a job.

To address the importance of mental health support for employees:

• Partner with mental health solution providers for increased access to therapy, counseling, and resilience training.
• Normalize mental health discussions through manager training and peer support programs.
• Ensure your employees have the paid time off and/or job flexibility to support their mental health.

No. 5: Strategic GLP-1 Access and Support

GLP-1 medications, like Ozempic and Wegovy, are reshaping the approach to weight management and diabetes care. However, their high cost presents challenges. According to data from HR Brew, outpatient prescription drug expenses are expected to rise by 11.4% in 2025, with GLP-1 medications being a major contributor to this surge.

To mitigate the overall impact these drugs will have on prescription drug spending:

• Evaluate pharmacy benefit manager (PBM) contracts for cost-effective access.
• Develop clinical support programs to optimize outcomes and provide lifestyle support for employees using these medications.
• Educate employees on eligibility, risks, and expected outcomes.

No. 6: A Closer Look at Pharmacy Contracts

With pharmacy costs accounting for a significant portion of healthcare spending, 52% of employers are considering changing their PBM in the next 1-3 years, according to a 2024 survey from the National Alliance of Healthcare Purchaser Coalitions.

To help address concerns around cost, transparency, and flexibility:

• Audit current PBM contracts for transparency and rebate practices.
• Leverage carve-out solutions to gain better control over specialty drug costs.
• Strengthen clinical controls in place, including prior authorization, step therapy, and a closed formulary.

No. 7: Elevating Management

Effective management is the foundation of employee well-being and engagement. According to Gallup research, 70% of the variance in team engagement is determined solely by the manager.

To highlight the crucial role a manager plays in employee engagement and overall job satisfaction:

• Provide managers with training in empathy, communication, and performance development.
• Enable managers with tools to identify and address employee burnout.
• Recognize and reward managers who excel in fostering supportive team environments.

Building Your Strategy: Key Takeaways

Employers and brokers can transform challenges into opportunities by aligning their strategies with current trends. To effectively put these strategies into action and address the impact of recent developments:

1. Leverage Data: Use employee surveys, claims data, and market analytics to make decisions.
2. Prioritize Equity: Ensure benefits are accessible and designed to address the diverse needs of employees across various demographics and life stages.
3. Collaborate: Work with broker and vendor partners to develop a strategic approach that engages employees and maximizes the value of their benefits.

By proactively and creatively engaging in these emerging trends, you can develop a 2025 benefits and healthcare plan that enhances employee well-being, improves affordability, and drives organizational success.