Health care costs associated with benefit programs are projected to increase by almost 8% in 2025. Inflation, rising pharmaceutical and treatment costs, and higher utilization of benefits are among the factors driving the average annual cost of health benefits per employee upwards of $16,000. With almost half of adults (43%) reporting that someone in their household has delayed medical care due to cost, these expenses could continue to rise.

For many small businesses, these increases will be financially untenable and pose logistical nightmares for large companies with diverse benefit offerings. Business leaders hoping to attract and retain top talent may be looking beyond raising employee contributions to offset these expenses. But benefits advisors can help guide their clients to consider whether they should absorb the cost increases, redesign their benefit offerings altogether, or both.
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4 benefits challenges advisors can help their clients face 

The intersection of rising costs, the hybrid workplace, and heightened employee expectations is reshaping the way employers think about health care benefits; but this presents an opportunity for brokers to get creative with what they offer their clients. Helping business leaders embrace a human-centric, innovative approach will lead the way in creating cost-conscious programs that prioritize wellbeing, foster engagement, and drive performance. Responding to these and other challenges should be top of mind for brokers this year.
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1. Making flexible work, work. 

Fear of losing employees has prevented many businesses from transitioning away from remote work. But as some employers see less motivated workers, lack of engagement, and more conflict, they are focused on bringing employees back to the office. Interestingly, it’s mostly Millennials and Gen X employees who prefer to work remotely. The majority of Gen Z employees (57%) want to be in the office at least some of the time.