In today’s challenging benefits market, combined with inflation, maximizing your benefits investment is more important than ever.
In our 2025 Midwest Employee Health & Benefits Benchmarking reports, Marsh McLennan Agency provides benchmarking data and insights, including:
- Total health benefit costs per employee
- Prescription drug spending trends
- Strategies employers are using to improve health care affordability
- Benefit offerings that matter most
The question now is, what can be done to control costs? Download the reports to learn more about where the problems lie, what trends are emerging, and what solutions are available.
Report findings
The average health plan cost per employee for Midwest employers increased by 2.5% in 2024, with an expected jump of 5.5% in 2025.
The findings show that, although inflation may have lessened somewhat, employers are still feeling the impact on their health plan costs. Employees are also facing high health care costs, especially in the Midwest, where average salaries are among the lowest in the nation.
Employers are managing the rising cost of health plans by:
- Focusing on multi-year health benefit strategies to manage costs and create value for employees and the business
- Working to drive health improvements for better business results
- Using Artificial Intelligence (AI) to promote efficiencies and better health
What’s causing the increase in costs?
The ongoing pandemic-related inflation has affected health benefit costs as health care providers renew contracts with carriers and raise prices to cover their own increased spending on wages and medical supplies. But inflation is only one factor driving increased costs.
- Medical advances come at a higher price, especially in pharmaceuticals.
- Increased use of behavioral health services and GLP-1 drugs for diabetes and obesity has contributed to rising costs.
- Misaligned incentives are built into the health care system, meaning providers earn more for delivering more services rather than more value.
- Faster cost growth also has implications for the affordability of health care, and increasing employees’ share of the cost may not be practical before it becomes a barrier for them to seek necessary care.
How Marsh McLennan Agency can help
Continuing the status quo is increasingly financially and organizationally unviable. Employers can create thriving, resilient organizations that are better positioned to weather the challenges of today’s uncertain world by optimizing their plans, investing in whole-person health, and addressing the needs of today’s multigenerational workforce.
Ready to transform your employee benefits experience? Get in touch with a Marsh McLennan Agency consultant. We can deliver a benchmark report and analysis of your health plan, as well as your absence, disability, and leave policies, to show you how you perform versus your competition. Our experience enables us to provide you with personalized guidance tailored to your organization’s unique needs.
