How HR & benefits leaders can tackle rising healthcare costs in 2025—and beyond

Healthcare costs are on the rise, and HR and benefits leaders are feeling the squeeze. According to a recent survey by Mercer, the cost of health benefits is expected to rise 5.8% on average in 2025. Balancing budgets while offering employees meaningful, affordable health benefits has never been more challenging — or more important. The good news? There are actionable steps you can take to navigate these financial pressures on your employer sponsored health plan and create lasting value for your organization and your people.

We’ll explore innovative strategies to manage rising healthcare expenses, including smarter benefit design, leveraging virtual care, and prioritizing preventive health. Whether you're reevaluating your health benefits approach or looking to lower health insurance costs for 2025 and beyond, we’ve got you covered.

The current landscape of healthcare costs for employers

Amid rising costs across the board, healthcare costs in the U.S. are surging, putting immense budgetary pressure on self-insured and fully-insured employers alike. This upward trend is driven by several key factors:

• Rising Medicare spending and an aging population
• Increased cost to render care
• Increased service utilization

Together, these issues create a perfect storm of rising expenses that can be difficult to manage. For many employers, the result is a strain on budgets that forces tough decisions about how to allocate resources — and which health coverages to offer.

Beyond the financial burden, the implications for talent management are equally concerning. As many benefits leaders have learned, healthcare costs aren’t just a budgeting issue — they’re a core component of workforce strategy. Employees increasingly expect robust and affordable benefits packages, and are even willing to switch jobs for better benefits. They’re looking for assistance from their employers for unique challenges like family building, postpartum care, and even menopause. Organizations offering limited or high-cost health care benefits may struggle to attract and retain top talent, losing out to competitors with more comprehensive and appealing offerings.

At the same time, cutting costs isn’t as simple as scaling back benefits. Employers face the challenge of finding ways to manage expenses without compromising the quality of care employees receive. Neglecting this balance can lead to disengagement, lower productivity, and increased turnover, all of which ultimately impact the organization’s bottom line.

The stakes have never been higher. To remain competitive and support the well-being of their workforce, employers need health care solutions that address both immediate financial pressures and the long-term sustainability of their employee benefits programs. From rethinking benefit design to promoting preventive care and increasing engagement in wellness initiatives, tackling health care costs requires a strategic and holistic approach. Organizations that succeed in reducing costs without sacrificing care will be better positioned to thrive in today’s challenging landscape.

How to reduce healthcare costs for employers while maintaining quality care

Employee health isn’t an equation, where you can add or subtract benefits until you meet a minimum score. Health coverage is an investment, and proactive and preemptive services can save costs down the road, provided they’re adequately supported today. In other words, expanding access to appointments and services today can help prevent those costly conditions from spiraling out of control. Let’s explore a few strategies to put this into practice:

Invest in preventive services and wellness programs

Preventive care is critical to reducing long-term healthcare costs while improving employee health. By catching conditions early, preventive care avoids the need for more expensive treatments down the road. For example, preconception care can help employees plan for healthy pregnancies and potentially avoid costly fertility treatments down the road. In fact, 30% of Maven’s fertility members achieve pregnancy without requiring Assisted Reproductive Technology (ART).

Wellness programs also play a critical role by reducing the prevalence and impact of chronic diseases such as diabetes and heart disease. These initiatives not only lead to healthier employees but also translate into lower healthcare claims for employers. Programs that encourage regular exercise, balanced nutrition, and mental well-being can have measurable effects on long-term health outcomes. You might even consider programs that help improve employee financial wellness as well. Investing in both preventive care and wellness initiatives helps employers tackle rising healthcare costs while fostering a healthier, more engaged workforce.

Offer telehealth and virtual care options

Telehealth is transforming how employees access care, making it more convenient and cost-effective. By reducing the need for in-person visits, telehealth lowers overall healthcare expenses while improving access to high-quality care. For pregnant employees, virtual care can make a significant difference in health outcomes. For example, employees who are Maven members are shown to have an up to 28% lower NICU admission rate, up to a 31% reduction in unnecessary emergency department visits, and up to a 20% lower rate of C-sections.

Beyond maternity care, telehealth services also provide timely access to specialists, mental health support, and chronic disease management support. Employees appreciate the convenience of virtual visits, which can be scheduled around their work schedule, family time, and personal lives as well. By integrating telehealth and virtual care options into benefits packages, employers can address rising healthcare costs while enhancing employee satisfaction and well-being.

Leverage digital tools and data analytics

Digital tools and data analytics can help your team make informed decisions about healthcare strategies. Health analytics can uncover trends in employee health claims, highlighting areas where targeted interventions can make a difference. For example, identifying high-risk populations enables companies to offer tailored programs that address specific health challenges, such as weight management, or stress reduction.

Employers can also leverage apps and platforms that provide personalized care recommendations. Digital-first tools like Maven offer customized health support that aligns with employees’ unique needs, from fertility planning to postpartum care. These tools help reduce costs by promoting proactive health management and streamlining care delivery. By harnessing the power of data and technology, organizations can create more efficient and impactful benefits programs.

Partner with innovative healthcare providers

Collaborating with forward-thinking healthcare providers can help employers offer better care at a lower cost. Digital platforms like Maven can significantly reduce high-cost claims associated with preventable ED and NICU admissions, as well as unnecessary or avoidable use of assisted reproductive technologies.

These partnerships also offer employees access to comprehensive care models that prioritize convenience and outcomes. Whether it’s virtual maternity care, preconception planning, or chronic disease management, innovative healthcare providers can help employers navigate rising costs while maintaining the quality of care employees expect. Exploring these collaborations is a key strategy for staying competitive in today’s challenging benefits landscape.

Prioritize mental health and family support benefits

Mental health conditions are among the leading contributors to high-cost healthcare claims. Employers can reduce these expenses while supporting their workforce by offering robust mental health and family support benefits. Providing access to therapists and psychiatrists through virtual platforms ensures employees receive timely care, even in underserved areas. 

Family support benefits are equally critical. Supporting working parents, postpartum employees, and caregivers with tailored resources — such as flexible scheduling, childcare assistance, and lactation support — can improve retention and productivity. 33% of Maven members report improved mental health support, and 70% say they are more productive at work as a result. Prioritizing mental health and family support not only curbs costs but also creates a healthier, more resilient workforce.

How reducing healthcare costs benefits your organization

Reducing healthcare costs have short and long term benefits for your organization. In the short term, it can free up budget lines for areas of immediate need and reduce some of the pressure on your organization to keep costs under control. In the long run, reduced healthcare costs are a leading indicator of improved employee health. 

But be sure not to confuse reduced spending with reduced costs: strategic investments in employee health may require some shuffling of your budget to accommodate. Remember, the target is not reduced spending on benefits, but reduced spending on claims. You can control spending year over year — but it’s a lot harder to control claims after they’re made.

Additionally, competitive and comprehensive benefits packages play a crucial role in attracting and retaining top talent. Employees increasingly prioritize healthcare benefits when evaluating job opportunities, and organizations that offer meaningful support stand out in a competitive job market. Enhanced benefits signal a commitment to employee well-being, fostering loyalty and long-term retention.

By focusing on strategies that reduce costs while maintaining quality care, organizations can build a healthier, more productive workforce while strengthening their financial foundation. The ripple effects of these efforts extend beyond the balance sheet, creating a workplace culture that values and supports its people.

Key considerations when implementing cost-saving strategies

Implementing cost-saving healthcare strategies requires careful planning and execution to ensure success. One critical consideration is maintaining equitable access to care for all employees. A robust strategy should address the diverse needs of the workforce, ensuring that every individual — regardless of location, role, or background — can access the care and resources they need.

Transparent communication is another essential element. Changes to benefits can be sensitive, and clear, consistent messaging helps avoid confusion or dissatisfaction. Employers should explain the rationale behind any changes, emphasizing the ways these adjustments benefit employees and the organization as a whole.

Finally, regular review and adjustment of strategies are vital. Employee feedback and data insights should guide ongoing refinements to healthcare initiatives. This ensures that programs remain effective and aligned with both organizational goals and employee needs. By adopting an inclusive approach, employers can maximize the impact of cost-saving strategies while maintaining employee trust and satisfaction.

Case study: Snowflake and Maven

In 2021, Snowflake partnered with Maven Clinic to enhance its global employee benefits, focusing on comprehensive family care. Recognizing gaps in traditional health plans that were driving high healthcare costs, Snowflake offered Maven's to all employees, which offers preconception, maternity, adoption, and parenting support. The program provides employees access to a diverse network of virtual and in-person providers in over 25 countries, ensuring tailored, continuous care. “Maven’s global availability helps ensure that everyone has access to support, resources, and guidance, no matter where they are or what path they’re on,” says Jessica Sutton, Benefits Program Manager at Snowflake. In just over a year of partnership, Maven provided care for Snowflake’s globally dispersed workforce. Some highlights include:

• 40% of Maven members are managing high-risk pregnancies
• 63% of Maven members are first-time partners
• Over 50% of Maven members identify as Male or secondary partners

Read the full case study

Building a forward-thinking healthcare strategy in 2025 with Maven

Reducing healthcare costs without sacrificing quality care is not just a financial imperative — it’s a strategic advantage. Employers who embrace innovative solutions like digital care platforms can achieve sustainable savings while fostering employee health and well-being. By prioritizing preventive care, mental health support, and accessible benefits, organizations create a culture that values their workforce. Learn more about how Maven can help reduce costs while providing exceptional care by requesting a demo today.