Small Business Owners: Beat the 2025 Insurance Premium Increase

Costs used to creep up by 3%, but now they’re set to rise 8% to 9%. That could mean over $16,000 per worker for a family employer health plan.

Small businesses might even see rising premiums hit 9% or more because of higher medical expenses, pricey specialty drug costs, and more people going to the doctor.

This premium surge is stressing your employee benefits budget. So, how can employers lower health insurance costs in 2025 without cutting coverage or losing great workers?

Good news—you’ve got options! Let’s check out the 2025 health insurance landscape and find some answers.

What’s Causing Health Insurance Premiums to Rise in 2025?

First, let’s ask: what’s causing health insurance premiums to rise? New specialty drugs like Ozempic and Wegovy—for diabetes and weight loss—are a huge reason.

They add 1% to health insurance costs in 2025 and cost $10,000 per person a year.

They’re awesome but super expensive! Big claims—like million-dollar cancer treatments—are going up too.

Plus, after COVID, people are getting more checkups and surgeries, so healthcare use is climbing.
For small businesses with regular employer health plans, these medical expenses hit hard because insurance companies raise rates.

Workers pay about $3,300 for a family plan—21% of premiums—and 43% say it’s tough to afford care even with insurance coverage.

If you push more health insurance costs their way, they might leave. So, how do I manage rising healthcare costs smartly? Let’s see.

1. Control How Healthcare Gets Used

One cool way to save is to manage how people use healthcare. In 2025, 27% of employers will try rules like prior authorization, health programs, and nurse helplines to cut rising premiums.

For example, prior authorization for specialty drugs makes sure they’re needed, saving tons on pharmacy benefits.

Health programs help workers with stuff like diabetes stay healthy, avoiding big emergency bills.

Nurse helplines fix small issues fast—no ER needed. Use data to spot big spenders early, and you’ll lower healthcare cost increases without touching insurance coverage. Easy, right?

2. Try Flexible Plans Like ICHRAs

Wondering, are ICHRAs a good idea for small businesses?
They’re hot in health insurance costs in 2025—64% of small businesses like them!
With an ICHRA, you give workers cash—like $500 a month—to buy their own affordable plans.

They choose what works, and you dodge huge rising premiums.
Not sure?
Offer different employer health plans with value-based care, where doctors care about results, not just visits. That can save 5.8%.

These ideas soften the premium surge and fit healthcare trends.

3. Share Costs the Smart Way

In 2025, 53% of employers will tweak costs to fight healthcare cost increases. Deductibles might go up—averaging $3,000 for families—but don’t go too far, or workers won’t like it.

Add Health Savings Accounts (HSAs) with a little money—like $500 per person—to help out. Give discounts for checkups or workouts to make insurance coverage feel good.

A tool called “Help Me Choose” from Aon saved $423 per worker by showing cheaper plans. These tricks handle rising health insurance premiums without making your team mad.

4. Team Up and Share Prices

Here’s another tip: work together! Ask your insurance company for better rates or add telemedicine + mental health perks—41% of small business owners want these because workers ask for them.

Telemedicine saves on simple medical expenses, and mental health keeps people happy—94% care about it in employee benefits.

Try price transparency tools—9% of employers use them—to show costs, like an MRI for $500 instead of $1,500.

One company saved 12% on scans this way. It’s a simple answer to how can employers lower health insurance costs in 2025.

Get Ready for 2025 Now

The 2025 health insurance premium surge is big, but you can handle it. Use controls, ICHRAs, smart cost-sharing, and teamwork to tackle healthcare cost increases.

An Ohio factory faced a 10% jump, tried an ICHRA, added a nurse line, and got telehealth. Costs stayed okay, and workers loved the affordable plans.

You can do the same!
Open enrollment is close—it’s never too early to start planning.

Managing rising healthcare costs in this new landscape is achievable.
Beat the rising premiums by piecing together a health package that promotes value based care and prevention.
You’ll keep your money and people safe.

Ready to rock healthcare cost management? Let’s Make Employee Benefits Great Again!