4 Employee Benefits Trends Shaping 2025

Employee benefits are transforming, and employers can get ahead of these changes as they strive to both manage costs and attract and retain top talent. This article explores key trends that will shape employee benefits in 2025.

1. New Administration’s Benefits Changes

Early into the current Trump administration, employers are waiting for signs of imminent changes to the health care system. In particular, analysts are monitoring changes to price transparency, potential cuts to Medicaid and the future of Affordable Care Act subsidies passed through the Inflation Reduction Act.

2. Growing Popularity of GLP-1s

Driven by growing popularity among employees, glucagon-like peptide-1 (GLP-1) drugs are in high demand for weight loss. GLP-1 treatment typically costs an average of around $1,000 per individual each month and should be taken continuously.

When considering covering weight loss drugs, many employers are concerned that they require a long-term commitment to be effective.

3. Rising Health Care Costs

Employers anticipate health care costs to increase at least 7% in 2025, according to industry experts. Beyond GLP-1 drugs, other specialty medications and treatments—like immunosuppressants, cell and gene therapies, biologics and antivirals—are primed to contribute to health care spending for 2025. In addition, factors such as aging populations, proliferation of chronic conditions, and a labor shortage in the health care industry are expected to drive up costs.

4. Family-building Benefits

More employers are offering family-building benefits because they have proven highly valued among younger employees. Among other benefits, popular coverage includes in vitro fertilization (IVF), surrogacy benefits, child care subsidies, and paid parental and adoption leave.

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