Employee Benefits & Corporate Well‑Being, September 2025

Overview:

• Employee benefits and well‑being programs have shifted from administrative add‑ons to strategic levers, with 88% of employers rating health benefits as “very or extremely important” for attracting and retaining talent. 
• Rapid changes in workforce expectations, from remote work flexibility to holistic well‑being, have elevated employee benefits into a board‑level priority. 
• Workforce globalization and multi‑generational expectations mean benefits must now ensure compliance across jurisdictions and adapt to diverse cultural norms, positioning them as critical tools for safeguarding corporate reputation and engagement. 

Market Size & Growth 

• US employer plan costs (2026 outlook): +6.5% with plan changes; +9% without; 59% of employers plan cost actions; two‑thirds of large employers target behavioral health access. 
• Global medical trend (2025): average ~10.4%; with insurers expecting 15%+ increases in mental‑health costs per person over three years in some regions. 
• Regional benchmarks (2025): Aon’s 112‑country outlook details higher trends in markets like Middle East & Africa (mid‑teens), informing location‑specific design and pricing. 

Key Growth Drivers

• Pharmacy & specialty drugs: Pharmacy already ~24% of employer health spend; pharmacy trend +11% (2025) and +12% (2026) pre‑design; GLP‑1 utilization rising (79% of employers report increases). 
• Cancer & chronic disease: 88% of large employers cite cancer as the top cost driver; increased mental health/SUD service use reported by 73%. 
• Utilization & access shifts: Virtual/behavioral care access expanding and changing usage patterns amid broader inflation and wage pressures.

M&A Overview

• Consolidation in stop‑loss and risk management reflects employer demand for predictable expense control as per‑employee health costs are set to rise 6.5–9% in 2026. 
• Scale‑ups in corporate wellness and fitness access aim to capture growing investment in holistic well‑being, with global medical trends showing double‑digit increases and employees seeking lifestyle benefits.
• Expansion into voluntary benefits and perks marketplaces is driven by multi‑generational workforce expectations for flexibility and digital touchpoints, with 70% of employers offering telemedicine and strong adoption of flexible platforms. 

AI’s Role

• AI‑orchestrated benefits ecosystems: Workday Wellness launches AI‑powered hub connecting employers to carriers and wellness vendors (Benepass, Guardian, MetLife, Sun Life, Unum, etc.), surfacing usage insights to optimize programs.
• AI adoption momentum: LIMRA–EY 2025 Workforce Benefits Study highlights AI opportunities in personalization, admin efficiency, and leave management as costs and complexity rise.
• Behavioral health & navigation: Employers emphasize digital navigation and behavioral care access as ROI levers (trend noted in Mercer survey coverage). 

Competitive Landscape

• Mercer, Aon, WTW, Gallagher shaping plan design, trend forecasts, and cost‑containment strategies (trend & benchmarking references). 
• Personify Health (Virgin Pulse + HealthComp), Workday Wellness, Wellhub, BenefitHub expanding integrated well‑being, navigation, and perks ecosystems. 
• Employer program prevalence (US benchmarking): PPO 81%, HDHP 64%; 70% telemedicine availability; HSA employer avg maximum $1,059 (single) / $1,735 (family). 

Sources: Reuters, Reuters (2), HR Dive, Global Medical Trends 2025, Global Medical Trends 2025 (2), Aon, BGH, SHRM, Fitt Insider, businesswire , Workday , EY 

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