Employers Project 8% Increase in Health Care Costs in 2025
A recent survey of employers by the International Foundation of Employee Benefit Plans (IFEBP) revealed that U.S. employers estimate a median 8% increase in health care costs for 2025. Catastrophic health claims and rising specialty prescription drug prices are driving the projected increase. According to IFEBP survey data, employers are implementing several cost management strategies, focusing more on utilization control (e.g., prior authorization, case and disease management, and nurse advice lines) and cost-sharing initiatives. More employers (21%) are planning to pass higher costs on to employees by increasing deductibles, coinsurance, copays or premium contributions, compared to 16% of employers who responded the same for 2024. Other cost-containment strategies include purchase and plan initiatives, administration and data analysis, and work and wellness programs.
While the best strategies for reigning in these costs may vary for each organization, employers should review their benefits offerings to determine the most effective cost-saving efforts and whether they are meeting employees’ needs.
Doula Benefits
As workers’ needs and desires for reproductive health benefits increase, many employers are matching them with expanded benefits. The Business Group’s 2023 Large Employers’ Health Care Strategy and Plan Design Survey found that 12% of employers offered birth doula services to expectant parents in 2022, and 27% are considering doing so for 2024-25. A doula is a trained professional who provides continuous physical, emotional and informational support to a pregnant person before, during and shortly after childbirth. Unlike medical professionals like obstetricians and midwives, doulas do not perform clinical tasks. Instead, they focus on the nonmedical aspects of childbirth, offering reassurance, comfort and advocacy. Doulas can also use their experience to help parents navigate the medical system. Doula care is becoming more popular because of its benefits to pregnant employees, such as improved birth outcomes, enhanced emotional well-being, personalized care and postpartum support.
As family-planning benefits continue to trend, employers can consider these ways to incorporate doula care:
- Direct coverage—Doula services can be included in employers’ medical plans. Some benefits providers may offer a managed doula program that employers can directly integrate into their sponsored health plans.
- Reimbursement programs—Employers can offer a program for employees to claim doula care expenses.
- Partnerships with doula organizations—Establishing partnerships with local or national doula organizations can provide employees with easy access to doulas and offer discounted rates for services.
- Educational resources—Employers can provide educational resources and workshops on the advantages of doula care.
Reach out to us for more employee benefits resources.
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