In this episode of Healthcare on the Rocks: Employee Benefits with a Twist, hosts Brittany Hardaway and Rachael Baumgartner sit down with Chris Gagen, Senior Director of Solutions Management at Springbuk, to break down the 2025 Employee Health Trends Report.
The conversation focuses on rising healthcare costs, what’s driving them, and how employers can navigate the financial impact. Chris shares eye-opening insights into the role of specialty drugs, surgical procedures, and gastrointestinal (GI) conditions in shaping employer healthcare spend.
One of the biggest takeaways? While drug costs remain high, the rise in medical claims—especially for MSK and GI surgeries—means employers need smarter strategies to control costs without shifting the burden onto employees.
A major theme in the discussion is the sharp increase in GI-related healthcare spending. GI diseases are now the third-largest cost driver for employers, trailing only cancer and diabetes. Surprisingly, much of this is fueled by the skyrocketing price of specialty drugs, with some treatments reaching six figures per patient annually.
Chris also highlights a fascinating link between GI health and mental health—employees with anxiety and depression are 3.5 times more likely to have irritable bowel syndrome (IBS).
This underscores the need for integrated wellness programs that address both physical and mental health holistically.
Key Takeaways:
- Healthcare Costs Keep Climbing: While pharmaceutical spending remains a top driver, the cost of medical claims—especially surgical procedures—has also surged.
- GI Conditions Are a Major Cost Concern: Employer spending on GI diseases has outpaced nearly every other category, second only to diabetes.
- Specialty Drugs Dominate Costs: Treatments for inflammatory bowel disease (IBD), such as Stelara and Skyrizi, account for nearly 80% of GI-related spending.
- Surgical Procedures Are Getting More Expensive: MSK (hip and knee) and GI (colonoscopies with biopsies) surgeries are among the biggest cost drivers.
- The Gut-Mental Health Connection: Employees with anxiety or depression are significantly more likely to have GI conditions, highlighting the importance of holistic health strategies.
- Employers Need Smarter Cost Management: Strategies like biosimilar adoption, formulary management, and centers of excellence can help control expenses without cutting benefits.
Stay in Touch!
- Connect with Chris Gagen on LinkedIn
- Get the complete 2025 Employee Health Trends report and other related resources
- Connect with our co-hosts Brittany Hardaway and Rachael Baumgartner
