7 stories on how employers are responding to rising benefits costs

When it comes to employee benefits, the keyword in 2025 is likely “cost.” Various studies show how rising healthcare prices affect organizations and workers alike. 

More than half of large employers, for example, plan to shift costs to employees, by raising deductibles or out-of-pocket maximums, a July Mercer report found. Employers expect health benefits costs to spike nearly 6% this year, a Mercer health and benefits leader said.

Although most workers want personalized benefits, cost is among the top barriers to offering them, according to a July Aon report. Multinational companies surveyed cited medical inflation as a main driver of higher costs. 

But benefits leaders should be careful about how they manage costs, a Gallagher executive said recently. Those who reinvest benefits savings to support workers’ well-being could be better positioned to compete for talent, he said. 

HR Dive collected a swath of stories on benefits and how employers are responding to a pricier healthcare environment.