Healthcare costs have been on an upward trajectory for years, with little end in sight.
In fact, insurers project a 10.2% increase in the U.S. for 2025, up from 9.3% in 2024, according to WTW survey results from late last year. And most said that will continue for years.
The reasons behind these increases are varied, but include a rise in new medical technologies and pharmaceuticals, the firm said, as well as increased utilization.
“The seemingly never-ending rise in costs poses a constant challenge for employers to take action in order to mitigate these unsustainable increases,” Linda Pham, global health and risk leader, integrated and global solutions at WTW, said in an analysis of the survey results.
To control costs while boosting benefits value, employers can evaluate vendor and digital health solutions that expand well-being resources and reduce unnecessary utilization, said Courtney Stubblefield, managing director, health and benefits at the firm. They can also review their markets to ensure efficient sourcing of private coverage.
Below are several recent stories on this trend, including news about its effects on employees and ways employers are working to boost value.