Discover key 2025 employee health trends from Springbuk's webinar: rising healthcare costs, GLP-1 impact, GI spend increases, and strategic benefits solutions for employers.
The healthcare landscape is evolving rapidly, and staying ahead of trends is essential for organizations striving to prioritize employee wellness while managing costs.
A Journey Through Healthcare Legislation
Nicole Belles, Springbuk’s SVP of Product, reminded us of the pivotal shifts in healthcare over the past two decades. “Between 2008 and 2022, we saw major milestones in healthcare legislation, the biggest being the Affordable Care Act in 2010. Many principles, like the need for transparency in both cost and quality, remain relevant today,” she explained.
“While cautiously watching all of these emerging trends, scientific advancements, and new legislation, employers adjusted and refined their strategies. From introducing family-centered programs to implementing financial wellness tools, these innovations have become essential in providing meaningful support to employees.”
Understanding this historical context not only helps us reflect on how far we’ve come but also prepares us to tackle new complexities in the future of benefits design.
Rising Healthcare Costs in 2023 and 2024
Chris Gagen shared an overview of escalating healthcare costs. “Healthcare costs were up again in 2024, with a projected 7.5% increase over the prior year,” he shared. “Medical claims are trending at over 7%, while pharmacy spend has risen 8%, primarily driven by specialty drugs.”
This upward trajectory mirrors 2023 trends, where compounded inflation and increased utilization of specialty drugs put financial pressure on employers and employees alike. Employers need proactive strategies to address these surging costs while continuing to support workforce health.
Trends in Medical and Rx Drug Spend
Janet Young, M.D., Clinical Analytics Advisor, dove into the driving forces behind rising costs in both medical and Rx drug spend. “Medical channel specialty drugs, particularly those used in cancer treatment, have seen a 32% increase in average cost per claim over the past four years,” she explained. “Meanwhile, Rx spend continues to rise due to increased prevalence of inflammatory conditions and expanded indications for drugs like GLP-1 agonists.”
The growing utilization of high-cost therapies underscores the need for employers to carefully evaluate their benefit design and explore cost-containment strategies such as formulary management and biosimilar adoption.
Technology and Treatment in Diabetes Care
“Diabetes spend has been rising rapidly, driven by a nearly 40% increase in members utilizing GLP-1 agonists over the past four years. While these drugs are effective at lowering A1C and reducing cardiovascular risks, their high cost underscores the need for strategic benefit design. Employers must balance short-term financial pressures with the long-term health benefits these treatments provide.”
Janet also notes that continuous glucose monitoring (CGM) represents a breakthrough for diabetes management. “CGM is increasing, particularly among Type 1 diabetes patients. It offers painless glucose tracking and provides real-time insights, yet members with high social vulnerability are less likely to access it,” Dr. Young noted.
Employers should consider plan designs that enhance accessibility to advanced treatments and technologies, ensuring all employees benefit from innovative care solutions.
Gastrointestinal Issues: Rising Prevalence and Costs
GI issues have emerged as a significant cost driver. As Chris Gagen explained, “GI is now the third-largest condition group in terms of per-member-per-month spend and has seen a 19.6% increase over the past three years. Inflammatory bowel disease (IBD) accounts for about half of GI spend, with specialty drugs driving most of the costs.”
This rising trend highlights the importance of addressing GI conditions through targeted interventions, cost-effective specialty drug strategies, and holistic care approaches that include mental health support, as stress often exacerbates GI issues.
Shaping the Future of Workforce Health
Springbuk’s 2025 Employee Health Trends Webinar provided a roadmap for employers navigating the complexities of workforce health. From addressing social determinants to adopting cost-effective treatments, actionable insights are at the core of smarter benefits strategies. Download the full report to dive deeper into these trends and equip your organization with the tools to drive meaningful change.