Healthcare costs are rising, and many employers are already feeling the pressure of balancing meaningful employee benefits with budget constraints.

With this growing burden, many employers are passing more costs onto employees, which can lead to financial stress, lower morale, and even turnover. But there’s good news: you can help your employees better understand and manage these changes, without losing trust or momentum.

In this blog, we’ll walk through why healthcare costs are rising, how employers are responding, and most importantly, how you can help your employees navigate this evolving landscape.

Why Are Healthcare Costs Increasing?

While healthcare costs grew slowly during the pandemic, that trend has reversed. Several factors are now driving costs higher across the board:

• Increased pharmacy spending
• Costly new treatments like gene and cell therapies
• High demand for behavioral health services
• Aging populations and chronic conditions
• Medical workforce shortages
• Technological advancements in care delivery

These pressures impact all employers, regardless of whether you offer a fully insured or self-funded plan.

How Employers Are Responding

To control rising costs, many employers are adopting a mix of strategies, such as:

• Requiring prior authorization for certain treatments
• Introducing disease management programs
• Providing nurse advice lines and telemedicine
• Offering wellbeing initiatives to encourage preventive care
• Using price transparency tools so employees can compare treatment costs
• Adjusting plan design (e.g., high-deductible plans, spousal surcharges, or dependent audits)

But plan design changes alone aren’t enough. How you communicate these changes is just as important as what you implement.

How to Help Employees Navigate Rising Healthcare Costs

As healthcare costs shift, employers have a chance to build trust and loyalty by helping employees understand what’s changing and why. Here are four key strategies:

1. Establish Clear, Empathetic Messaging
When announcing benefit changes, simplicity is key. Avoid jargon and clearly explain what’s changing, why it’s happening, and how it affects employees. If there are cost increases, balance the message with any added value, for example:

“While premiums are increasing slightly this year, we’ve added new virtual care options and expanded mental health support at no extra cost.”

Transparency goes a long way in maintaining trust.

2. Communicate Through the Right Channels
Every workforce is different. Use a mix of communication tools that work best for your team, such as:

• Email newsletters
• On-site meetings or town halls
• Intranet posts or mobile apps
• Printed materials or mailers
• Video explainers

The key is to communicate early, often, and clearly.

3. Educate Employees on Their Benefits
Help employees become smart healthcare consumers by providing:

• Easy-to-understand guides on how their plan works
• Cost comparison tools and provider search platforms
• Information on in-network vs. out-of-network costs
• Explanations of terms like deductible, coinsurance, and copays

Consider sharing a breakdown of total plan costs to show how much your organization contributes – it helps employees appreciate the full value of their benefits.

4. Offer Support Tools
You don’t have to do it all alone. Many carriers and brokers offer resources like:

• Health advocate services
• Online benefits portals
• Virtual care platforms
• Financial wellness tools

Make sure employees know these tools exist and how to use them.

Empower Your Team Amid Rising Healthcare Costs

Rising healthcare costs are a challenge, but also an opportunity. Employers who communicate effectively, educate their teams, and show empathy can turn a tough situation into a trust-building moment.

By helping your employees navigate these changes with clarity and care, you’re not just easing their financial stress – you’re building a stronger, more loyal workforce.

Need help navigating rising healthcare costs and building a strategic benefits strategy? Contact OneDigital today for expert support and tailored employee benefits solutions.