American Employers Brace for 7.7% Health Insurance Cost Increase in 2025, WTW Report Finds

As healthcare costs continue to climb, many companies are exploring ways to reduce total expenses.Photo byHush Naidoo Jade PhotographyonUnsplash

According to a new report from consulting firm WTW, U.S. employers expect healthcare costs to rise by 7.7% in 2025, up from 6.9% in 2024 and 6.5% in 2023. This increase will impact roughly 165 million Americans who receive health insurance through their jobs.

As healthcare costs continue to climb, many companies are exploring ways to reduce total expenses. The report found that 52% of employers plan to implement cost-cutting programs, such as selecting lower-cost providers and care sites. While this could help reduce paycheck deductions for employees, it may result in a more limited choice of doctors.

Additionally, 34% of employers are preparing to pass some of the rising costs onto workers by increasing premiums or raising co-pays on high-deductible health plans. This trend reflects the growing challenge of balancing affordable care with rising healthcare costs across the U.S.