Labor & Employment Law Daily Wrap Up, REPORTS—Cost increases challenge employers to find new ways to deliver value, mitigate risk while still containing costs, (Jan 31, 2025)

By WK Editorial Staff

Many employers are expanding their mental health offerings, in part, through support for employees and their families across various life stages.

Employers continue to try to strike the right balance in providing competitive benefits that support and ...

By WK Editorial Staff

Many employers are expanding their mental health offerings, in part, through support for employees and their families across various life stages.

Employers continue to try to strike the right balance in providing competitive benefits that support and engage their workforce while navigating an environment of growing fiduciary risk and cost containment pressures, according to recent research from benefits consultant NFP. The 2025 NFP US Benefits Trend Report found that even as health care costs continue to rise, employers remain committed to their benefits programs with only four percent decreasing their health care spend this year and 43 percent increasing it.

“Most employers are at an intersection of a rapidly evolving economic, legislative and political landscape, and health care is a key component of this,” said Doug Hammond, CEO of NFP. “As employers strive to ensure their employees have access to quality health care, they also appreciate the importance of minimizing the costs passed on to their workforce. This requires employers to be proactive and innovative in their approach. As they consider options, it is critical for benefits decision-makers to connect with the right expertise as efforts to ensure organizational success become more complex.”

The survey found the following:

Curbing costs. Employers are choosing innovative options such as value-based benefits (35 percent) and direct-to-hospital/provider agreements (27 percent) to offset costs.
Prescription drugs. Employers are seeking sophisticated approaches to their pharmacy benefit managers (PBMs), with 70 percent prioritizing the control of prescription drug spend. To help control their pharmacy costs, employers are shifting toward independent benefit management, with 64 percent choosing either direct PBM carve-outs or coalition participation.
Leave management. As employers struggle to manage the complexities of leave requirements, 71 percent said that they spend more than four hours on administration for each leave request. Tools like technology-supported or outsourced leave management are growing in popularity to help employers remain compliant, NFP found.
Wellbeing offerings. Employers face a challenging landscape in helping employees enhance their wellbeing. Many employers are expanding their mental health offerings, in part, through support for employees and their families across various life stages—from pediatric and dependent-children mental health services to increased offerings for the “sandwich generation” of caregivers.

News: Reports Surveys IndustryNewsTrends BenefitsNews

Labor & Employment Law Daily Wrap Up, REPORTS—Cost increases challenge employers to find new ways to deliver value, mitigate risk while still containing costs, (Jan 31, 2025)

By WK Editorial Staff

Many employers are expanding their mental health offerings, in part, through support for employees and their families across various life stages.

Employers continue to try to strike the right balance in providing competitive benefits that support and ...

By WK Editorial Staff

Many employers are expanding their mental health offerings, in part, through support for employees and their families across various life stages.

The survey found the following:

Curbing costs. Employers are choosing innovative options such as value-based benefits (35 percent) and direct-to-hospital/provider agreements (27 percent) to offset costs.
Prescription drugs. Employers are seeking sophisticated approaches to their pharmacy benefit managers (PBMs), with 70 percent prioritizing the control of prescription drug spend. To help control their pharmacy costs, employers are shifting toward independent benefit management, with 64 percent choosing either direct PBM carve-outs or coalition participation.
Leave management. As employers struggle to manage the complexities of leave requirements, 71 percent said that they spend more than four hours on administration for each leave request. Tools like technology-supported or outsourced leave management are growing in popularity to help employers remain compliant, NFP found.
Wellbeing offerings. Employers face a challenging landscape in helping employees enhance their wellbeing. Many employers are expanding their mental health offerings, in part, through support for employees and their families across various life stages—from pediatric and dependent-children mental health services to increased offerings for the “sandwich generation” of caregivers.

News: Reports Surveys IndustryNewsTrends BenefitsNews