Health care costs in the United States continue to climb, placing increasing pressure on employers and employees alike. Organizations that offer health benefits are challenged with managing escalating expenses while maintaining transparency and trust with their workforce. Transparent and empathetic communication is essential to help employees understand and navigate rising health care costs. Consider these strategies:
- Develop clear, concise and simple messaging. It’s essential to use straightforward language to explain why costs are rising and what steps the organization is taking to manage them. Consider highlighting any positive changes, such as coverage for more specialty drugs or added wellness benefits.
- Educate employees on cost drivers and plan usage. Employers can share insights on how employees can use their plans effectively, avoid unnecessary costs and understand the value of their benefits. Resources like cost comparison tools and provider directories can be helpful for employees.
- Highlight cost-containment efforts. Show employees what you’re doing to manage costs (e.g., negotiating with providers, using reference-based pricing, offering telehealth or investing in wellness programs). This reassures them that you’re actively working to protect their benefits.
- Use real-world examples. For example, explain how a new high-cost medication impacts premiums or why increased mental health utilization is a positive but costly trend.
- Explain macroeconomic factors. The main point for employees to understand is that these rising costs aren’t specific to the organization—they are happening everywhere. To help employees understand the bigger picture, employers can explain why costs are increasing (e.g., inflation, labor costs, diagnostics and therapeutics advances and provider consolidation).
Ultimately, employers can play a pivotal role in helping employees understand and manage the impact of these changes. Contact us today for more workplace resources.
The information in this newsletter is intended for informational use only and should not be construed as professional advice. ©2025Zywave, Inc. All rights reserved.
