According to projections by Aon, the average cost of employer-sponsored health care coverage in the United States will increase by 9% in 2025. The overall cost to employers in 2025 will surpass $16,000 per employee compared to $14,823 in 2024. From 2023 to 2024, employer healthcare costs increased by only 6.4%.
Continued increases in medical claims and rising prescription drug costs are key contributors to the jump. “On the prescription drug side, specialty drugs remain the leading factor in spending, even though they represent a small fraction of overall utilization,” said Debbie Ashford, chief actuary for North America health solutions at Aon.
Rising employment and wage increases due to inflation are also pushing costs up as the health care industry negotiates higher prices to keep pace with these pressures.
Another factor is the increase in obesity and diabetes-related chronic illness management, which can involve specialty drugs and treatments. This development may represent both a cost and an opportunity, however. “We are at a pivotal time in helping employers think about balancing the costs of GLP-1 prescription drugs with the opportunity they provide to treat obesity and reduce the chronic conditions associated with this disease,” said Farheen Dam, North America health solutions leader at Aon.