Mercer’s preliminary findings from its 2024 National Survey of Employer-Sponsored Health Plans reveal that health benefit costs per employee are projected to rise by 5.8% on average in 2025. This marks the third consecutive year of cost increases above 5%, following a decade of relatively moderate growth averaging around 3%. The survey, which analyzed responses from over Prescription drug costs remain a major factor, with employers reporting a 7.2% increase in drug benefit expenses per employee in 2024, driven in part by costly new gene and cellular therapies. The survey also highlights a growing trend of employers implementing cost-cutting measures, with 53% of employers planning changes to their plans in 2025, such as raising deductibles and cost-sharing provisions. As employers balance healthcare affordability for employees with managing organizational costs, this trend is expected to continue, potentially leading to higher out-of-pocket costs for employees. The final survey results are expected later this year.
