--- title: Employers Redesign Plans to Cut Health Costs description: As health care expenses continue to climb, employers are likely to adopt innovative and forward-thinking strategies. image: https://blog.nisbenefits.com/hubfs/blog-headers/er-resdesign-health-costs-b.jpg --- ![Employers Redesign Plans to Cut Health Costs](https://blog.nisbenefits.com/hubfs/blog-headers/er-resdesign-health-costs-b.jpg) # Employers Redesign Plans to Cut Health Costs - Home - [Employee Benefit News for School, City and County Employers](https://blog.nisbenefits.com) - Employers Redesign Plans to Cut Health Costs [ Steve Smith ](https://blog.nisbenefits.com/author/steve-smith) 10/25/2024 [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions) [0 Comments ](https://blog.nisbenefits.com/employers-redesign-plans-cut-health-costs#postComment) 1 Minutes *1 minute read* The [2024 Best Practices in Healthcare Survey](https://www.wtwco.com/en-us/news/2024/09/healthcare-costs-at-a-post-pandemic-high-us-employers-prioritize-affordability-and-wellbeing) by WTW reveals that rising healthcare costs are prompting over 51% of U.S. employers to redesign plans for affordability, focusing on new designs and network strategies to guide employees to cost-effective, high-quality providers. U.S. health care costs have soared since the COVID-19 pandemic, with nearly half of employers anticipating expenses to exceed budgets this year. Forecasts predict a 7.7% rise, with estimates ranging from 5%-9%. Reports indicate an 8% median increase by 2025, driven by rising pharmacy and catastrophic health costs.   ## **Cost Mitigation Strategies** Beyond redesigning plans, 52% of employers aim to cut costs by introducing new programs. Strategies include promoting drug discount cards and allowing medication purchases from retail or "cost plus" outlets. Future cost-cutting measures include: - Bidding on vendors and health plans - Assessing employee assistance and mental health programs - Leveraging technology for expense management - Carving out pharmacy benefits Additionally, 34% of employers plan to shift costs to employees via premium contributions, while 20% will promote account-based or high deductible health plans.   ## **Takeaway** As health care expenses continue to climb, employers are likely to adopt innovative and forward-thinking strategies. Employers will tailor their plan designs to meet unique needs, but with the right tactics, may help offset the rising prices projected in 2025. Download the [bulletin](https://blog.nisbenefits.com/hubfs/blog-supporting-docs/bulletin-report-ers-redesign-health-care-costs.pdf) for more details.     --- #### Tag: [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions) #### Share: - [Follow us on Facebook ](http://www.facebook.com/share.php?u=https://blog.nisbenefits.com/employers-redesign-plans-cut-health-costs) - [Follow us on Twitter ](https://twitter.com/intent/tweet?url=https://blog.nisbenefits.com/employers-redesign-plans-cut-health-costs&text=Employers%20Redesign%20Plans%20to%20Cut%20Health%20Costs) - [Follow us on Linkedin ](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.nisbenefits.com/employers-redesign-plans-cut-health-costs) - [Follow us on Pinterest ](http://pinterest.com/pin/create/button/?url=https://blog.nisbenefits.com/employers-redesign-plans-cut-health-costs&text=Employers%20Redesign%20Plans%20to%20Cut%20Health%20Costsdescription=1%20minute%20read%20The%202024%20Best%20Practices%20in%20Healthcare%20Survey%20by%20WTW%20reveals%20that%20rising%20healthcare%20costs%20are%20prompting%20over%2051%%20of%20U.S.%20employers%20to%20redesign[...]&media=https://info.nisbenefits.com/hubfs/blog-headers/er-resdesign-health-costs-b.jpg) --- [ #### IRS Permits Flexible Allocation of Employer Contributions Across Benefits ##### Previous Post ](https://blog.nisbenefits.com/flexible-allocation-employer-contributions) [#### 2025 Health FSA Limit ##### Next Post ](https://blog.nisbenefits.com/2025-health-fsa-limit) ### Leave a Reply This is a search field with an auto-suggest feature attached. - 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