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Aon projects employer health costs will rise 9% next year

Employer health costs are projected to rise by 9% in 2025, with the average cost per employee surpassing $16,000, driven by higher medical claims and rising prescription drug costs, particularly for specialty medications like GLP-1s. Click here for article.

  • The projected 9% increase in employer health costs for 2025 follows a 6.4% rise in 2024, despite efforts to manage expenses by increasing employee cost-sharing.

  • The average healthcare cost per employee is expected to exceed $16,000 in 2025, up from $14,823 in 2024.

  • Specialty medications and the growing demand for GLP-1s are significant factors contributing to the rising costs, with GLP-1s alone projected to drive a 1% increase.

  • Employees’ out-of-pocket costs rose by 3.4% in 2024, with the average contribution being $4,858, including premiums, deductibles, and copayments.

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