Recalibrating Benefits Strategy

Why 2025 Demands a Strategic Approach to Employer Health Plans 

As employers navigate a post-pandemic world marked by economic pressure, shifting workforce expectations, and rising healthcare costs, one thing is clear: the traditional benefits model is no longer enough. According to the newly released 2025 Benefits Trends Survey from WTW, rising benefit costs have now surged to the top of the list of issues shaping benefits strategy, outpacing even competition for talent and mental health concerns (WTW, 2025). 

This finding is both a warning and an opportunity for organizations looking to attract and retain top talent while managing financial risk. It signals a critical need for employers to rethink how they design, deliver, and measure the value of their employee benefits, particularly their healthcare benefits. At Healthcare Highways, we believe this shift aligns perfectly with our mission: to help employers reclaim control of their health plans with strategically engineered provider networks that optimize cost, quality, and access. 

The Rising Cost of Benefits, A Growing Concern for Employers 

The WTW report highlights a significant transformation in the benefits landscape over the past five years. In 2021, inclusion and diversity topped the list of strategic priorities. By 2023, competition for talent had taken center stage. But in 2025, rising benefit costs have claimed the #1 spot. This shift underscores the mounting pressure on employers to find cost-effective solutions that don’t compromise the employee’s experience. 

While factors like inflation, new medical technologies, and increased demand for mental health services contribute to this trend, the core challenge remains the same: How can employers deliver meaningful healthcare coverage that supports employees’ needs without breaking the budget? 

“For benefits to truly deliver value, employers must understand the unique needs of their employee population and how to provide proven solutions that satisfy those needs,”

says President of Healthcare Highways, Chris Wilson.

“We’re seeing a shift from static network strategies and fragmented point solutions to integrated strategic solutions working cohesively to deliver real cost containment and a positive care experience.” 

Understanding the Top Issues Influencing Benefits Strategy 

Figure 1
Biggest Issues Influencing Benefits Strategy. Adapted from Recalibrating employee benefits: How companies are delivering value in a cost-constrained world, by WTW, 2025, https://www.wtwco.com/en-us/insights/2025/06/recalibrating-employee-benefits-how-companies-are-delivering-value-in-a-cost-constrained-world. Copyright 2025 by WTW.

The WTW survey (2025) offers a clear look at how employer priorities are evolving: 

• Rising benefit costs are now the most urgent issue in 2025, replacing 2023’s top concern, competition for talent. 

• Financial pressures on budgets and cost-of-living issues for employees are also rising, reflecting broader economic concerns. 

• Mental health remains a critical issue, though it has dropped in relative priority, perhaps due to a proliferation of support tools introduced during the pandemic years. 

• Expectations for enhanced employee experience are climbing the list, signaling a growing demand for personalization, transparency, and digital ease. 

This pivot toward cost control doesn’t mean employers are retreating from their commitment to employee well-being. Rather, it reflects a maturing benefits strategy that seeks to align employee needs with business realities. 

Why Employer-Sponsored Health Plans Need a New Route 

Traditional status quo health plans often leave employers with limited control, opaque cost structures, and minimal flexibility to adapt to their workforce’s specific needs. As healthcare costs continue to climb, these one-size-fits-all models can erode the value of even the most well-intentioned benefits packages. 

That’s where network-based innovation comes in. At Healthcare Highways, we design provider networks tailored to the needs of employers and their employees. Our networks are built with local, regional, and national providers who deliver quality care at competitive rates while maintaining transparency and accountability. 

This approach allows employers to: 

• Gain more control over healthcare costs 

• Offer a curated selection of in-network providers 

• Deliver a better member experience through guided navigation 

"Employers are no longer asking if they should rethink their benefits approach—they’re asking how do we lower our cost?” Wilson explains. “Our role is to be that guide and to help them reimagine their benefits strategy in a way that is both financially responsible and human centered.”

Meeting Employee Expectations in a Cost-Constrained World 

Today’s workforce is looking for more than just coverage, they want clarity, convenience, and choice. Employees expect to understand what their plan includes, who they can see, and what they’ll pay. Yet, traditional plan structures often fall short, leaving them confused or financially exposed. 

At the same time, employers are facing mounting cost pressures. The WTW report confirms that rising benefit costs are now the number one issue influencing benefits strategies, with over two-thirds of employers naming it a central concern. As a result, the focus is shifting from enhancing the employee experience at any cost to delivering that experience in a financially sustainable way. A streamlined, easy-to-navigate healthcare journey remains critical for employee retention and productivity, but now it must be paired with real, measurable value. 

Healthcare Highways bridges this gap by delivering a smarter, more member-centric benefits experience through: 

• Curated network solutions that emphasize quality, value, and access by connecting members to high-performing providers while helping employers manage costs
• Concise and transparent data that provide employers with clear, actionable insights to monitor plan performance and support data-driven decisions
• An intuitive provider directory that makes it simple for employees to search and select in-network doctors and facilities with confidence

We also customize our solutions based on region, industry, and population, because every workforce is different, and each market has a unique healthcare ecosystem. 

A Strategic Partner in a Challenging Benefits Environment 

As employers reevaluate their health benefits strategy for 2025 and beyond, they need partners who understand both the business and human sides of the equation. Healthcare Highways stands at that intersection—combining network engineering, analytics, and experience design to create plans that work. 

We know that no two employers are alike. That’s why we work consultatively to: 

• Assess the current state of your plan 
• Identify cost drivers and opportunity areas 
• Build a network strategy based on your goals 
• Deliver support throughout implementation and beyond 

Whether you're a public entity, a charter school, or a growing enterprise navigating self-funding for the first time, we offer scalable, sustainable solutions designed to meet the moment. 

The Path Forward: Reclaiming Value in Health Benefits 

The WTW 2025 Benefits Trends Survey serves as a wake-up call as benefit costs are rising, employee expectations are evolving, and the old playbook is no longer enough. But it also points to a new path that is rooted in data, driven by strategy, and centered on people. 

Healthcare Highways is here to help employers take that path with confidence. Let’s build something better together.

Contact us to learn how we can help optimize your network strategy.