Employers Struggle to Provide Quality Healthcare Amid Increased Costs and Fiduciary Concerns

March 7, 2025
Hall Benefits Law, LLC

Employers are facing multiple challenges this year in providing competitive and quality health care benefits for employees. Skyrocketing costs, increased fiduciary risk, and a constantly evolving legal and political landscape all are impacting the ability of employers to effectively provide healthcare benefits.

Nonetheless, employers appear dedicated to continuing to provide these benefits, with an estimated 43% of employers increasing their healthcare expenditures, according to the 2025 NFP U.S. Benefits Trend Report. Only four percent of employers reported reducing their healthcare expenditures.

The NFP report found various other trends in employer-provided healthcare coverage, as follows:

  • Healthcare transparency legislation have heightened employer fiduciary responsibilities in the provision of healthcare benefits.
  • Extensive litigation has resulted in higher awareness of fiduciary duties for employers concerning pharmacy benefit managers (PBMs) and a move toward prioritizing the control of prescription drug costs.
  • Employers are increasingly looking to technology and outsourcing of leave management, as more than seven in ten employers report spending more than four hours on each employee leave request.
  • Employers are expanding mental health benefits for employees and their families, no matter their stage of life.
  • Employers are focusing on physical, social, and mental wellbeing programs, with a particular emphasis on weight management, nutrition, exercise, and education.

Overall, employers seem to be trending toward offering healthcare solutions that better meet employee needs and keep them healthier and happier. Taking these steps can result in a more engaged and dedicated employee workforce eager to work toward organizational priorities.

HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.

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Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.