As companies evaluate what health and benefit strategies are needed for 2025, Mercer asked 537 organizations with 500 or more employees what their plans for next year. The resulting survey pointed to a range of new programs as well as a continuation of those already in place.
The top line concern however is the increase in costs. After almost ten years of a 3% rate for the total health benefit cost per employees, the cost in 2023 increased by 52%. Unfortunately, this increase is expected to continue at 5% for 2024.
A large factor in this increase was medical inflation that was just being felt in 2023. Another contributor to increased costs is prescription drug costs which rose 8.6% in 2023. This was driven by a 10.2% specialty drug cost per employee.
As is the case with prior years when costs increase, employers tend to shift some costs to employees. However, with the current tight labor market situation 37% of employers say it’s not likely that they will use this tactic. On the other hand, 14% said they will make plan designs that do raise deductibles or out-of-pocket maximums.
Mental Health Benefits
Looking at specific programs, such as EPAs, 45% of the companies surveyed either currently offer this benefit or will in 2025. In-person counseling at one or more sites is at 29%.
An area of particular focus, especially in the EHS sector, is that of mental health. Over half (54%) of those surveyed have added stress management/resiliency resources or will by 2025. Other tools to address mental health that employers are offering include digital Cognitive Behavioral Therapy.
From a leadership perspective, 46% of companies say they are working on anti-stigma messages surrounding the issue of mental health. This includes leaders sharing personal stories about seeking health for mental health issues. Around half of companies have or will implement this type of strategy next year.
The report found that “as the stigma around mental health concerns lessens, employees are seeking treatment in larger numbers, which — along with the ongoing shortage in behavioral healthcare providers — has contributed to longer wait times to care." To address this issue 31% of companies are providing a supplemental behavioral health provider network for virtual or in-person care.
And 45% of respondents are training managers to be able to detect mental health concerns and then steer employees to resources.
Substance Use Disorders
While communication around mental health has improved, more work needs to be done about reducing stigma around alcohol and substance use disorders (SUD). Only 23% of employers engage in raising awareness about SUDs.
There was an improvement with regard to the new 988 Suicide and Crisis Lifeline line as 34% communicated this to employees.
The report covers a wide variety of other health strategies including:
- · AI and Virtual Care
- · Pharmacy management
- · Support for caregivers
- · Inclusive benefits and health equity
