2025 Benefits Trends to Watch

A new year brings new dynamics in employee benefits. Here's what we're watching as 2025 unfolds—and what benefits professionals should prepare for.

Trend 1: GLP-1 Decisions Solidify

After a year of scrambling, most employers have formalized their GLP-1 coverage policies. But the landscape remains unsettled:

• Watch for employers revising policies as utilization data comes in
• Expect continued pressure from employees who want coverage
• Long-term efficacy data will influence future decisions

This will remain a hot topic through open enrollment and beyond.

Trend 2: Mental Health as Standard

Mental health benefits have matured from differentiator to expectation:

• 8-10 EAP visits is the new minimum
• Telehealth mental health is universal
• Digital mental health tools are increasingly common
• Manager training and cultural support are emerging focus areas

Employers still below these thresholds will feel pressure to catch up.

Trend 3: Cost Pressure Continues

Healthcare cost growth remains elevated:

• Mid-to-high single-digit increases expected
• Specialty pharmacy driving disproportionate share
• Provider labor costs flowing through to pricing
• Utilization fully recovered from pandemic lows

Employers will need active cost management strategies, not passive hope.

Trend 4: Self-Funding Growth

The shift toward self-funding continues:

• More mid-size employers (100-500) exploring self-funding
• Captive arrangements becoming accessible to smaller groups
• Stop-loss market offering more options
• Greater appreciation for cost transparency

Self-funding is no longer just for large employers.

Trend 5: Voluntary Benefits Expansion

Voluntary benefits continue to grow and diversify:

• Critical illness and hospital indemnity gaining ground
• Pet insurance mainstream among younger workers
• Identity theft protection standard
• Financial wellness programs expanding

Employers are enhancing total rewards without adding employer cost.

Trend 6: AI in Benefits Administration

Early AI adoption is appearing:

• Chatbots for benefits questions
• AI-assisted plan selection tools
• Automated claims processing
• Predictive analytics for cost management

Impact is still limited but growing.

What to Do

For benefits professionals navigating 2025:

1. Benchmark now — Know where you stand before renewal season
2. Address GLP-1s explicitly — Don't let policy develop by accident
3. Audit mental health — Ensure you meet the new baseline
4. Model scenarios — Prepare for various cost increase levels
5. Communicate value — Help employees understand what they have

The employers who plan ahead will be better positioned than those who react.