Expect Higher Costs for Your Health Care Benefits Next Year

Published On Nov 1, 2024, 9:00 AM

A report indicates that employers expect health care costs to increase by an average of 9% in 2025, driven by expensive medical options like weight-loss drugs and gene therapies. However, workers are not likely to bear the brunt of these increases, as employers have historically absorbed costs to attract and retain talent in a tight labor market. Over the past five years, employees’ contributions have only risen by 5%, despite more rapid increases in total premium costs. This trend is expected to continue, though employees may still feel financial strain amidst overall rising living costs.