In 2025, workplace health insurance premiums are predicted to be at their highest levels in decades.

• For 2025, it is predicted that the average increase in health-care premiums within workplace benefits plans will be between 7% and 8%.
• Next year, health insurance and other benefits for many workers will become more expensive due to inflation, the growing use of GLP-1 drugs, and a rise in catastrophic medical claims.
• It is crucial for employees to closely review insurance plans during open enrollment and consider high deductible options as a way to potentially lower costs due to the rate increases.

The open enrollment season has commenced, but numerous employees have not yet chosen their benefits for the upcoming year. Upon sitting down to make their selections, they might encounter an unpleasant shock: increased expenses.

Health insurance and other benefits for workers may become more expensive next year due to inflation, increased use of GLP-1 drugs, and higher catastrophic medical claims. Employers are facing rising costs, and some are passing these expenses onto employees through higher premiums or reduced coverage options. Some companies are also switching plan providers in an effort to reduce costs.

Regina Ihrke, health, equity and wellbeing leader for North America at, stated that employees should anticipate paying, on average, 7% to 8% more in premiums than they did the previous year. This implies that a company could increase premiums by 4%, while another could increase them by 15%. Unfortunately, Ihrke said, this is the highest increase in premiums seen in decades.

Here's what workers should consider when choosing benefits this open enrollment season:

Start by figuring out how much you can afford to pay for benefits

This year, many employees are prioritizing spending less on benefits, despite always having to consider their finances when making choices.

Limra, an insurance trade association, surveys employees annually about their spending on benefits. In 2024, the median out-of-pocket cost was $120 per month, while the average was $223 per month, excluding retirement savings. In 2023, the median was $150 per month and the average was $234. According to Limra, the decline in spending is due to inflationary pressures that have put a strain on household budgets.

In September and October, a Voya survey found that 73% of respondents prioritize the plan with the lowest out-of-pocket costs, while 69% opt for the plan with the lowest monthly cost. Additionally, 53% of respondents are willing to sacrifice coverage options for a lower health insurance cost.

See if switching to a high-deductible option may lead to savings

Some employers offer employees the option of selecting a high-deductible plan, which typically has a lower monthly premium. However, you'll pay more out-of-pocket for healthcare before the insurance company's share kicks in. Preventive care is usually covered at 100% under most health plans for in-network services.

Ihrke advised workers to assess whether they can afford to cover medical expenses before their deductible is met. They may also benefit from combining a high-deductible plan with an HSA, a tax-advantaged savings account that can assist in paying for eligible medical expenses.

Search for new and alternative plans that may be available

To keep costs down, employers may be introducing new plan options to employees, such as new carriers or plans with existing providers, according to Carole Mendoza, vice president of benefits at Voya.

In an effort to reduce expenses for employees, some companies are opting for alternative healthcare providers such as Surest Health Plans, a subsidiary of UnitedHealthcare, Centivo, and Firefly Health.

Pay attention to pharmacy benefit coverage, especially if you use weight-loss drugs

It's wise to discuss your medication needs with your employer's open-enrollment team or use self-service tools to determine the cost implications, as some employers offer multiple plan options. According to Ihrke, this could lead to significant differences in out-of-pocket costs.

It is important to note that while GLP-1 drugs such as Wegovy and Ozempic are often covered for diabetes, coverage for weight loss purposes is not always clear. According to a July poll by WTW, 52% of employers offer coverage for GLP-1 drugs for weight loss, while 48% are still deciding on coverage options. It is important to review your employer plan coverage policy for this year, as coverage may have changed from last year.

Consider supplemental health benefits to help manage costs

Employers are increasingly offering critical illness coverage, hospital indemnity, and accident insurance to supplement high-deductible health plans, as they are "focused on finding ways to make health care more cost-effective," Mendoza stated.

The cost of employee benefits can vary, so it's important to calculate the premiums. For example, accident insurance premiums can range from $6 to $20 monthly per employee, while critical illness coverage typically costs between $21 and $70 per month. Hospital indemnity coverage starts at around $10 per month.

An unexpected hospital stay could be financially challenging for 60% of Americans, according to a recent survey by Equitable, which provides supplemental health insurance options.

According to Stephanie Shields, head of Equitable's employee benefits business, employees must assess their requirements and make decisions that offer the most suitable coverage for their lifestyle and circumstances.

Spend more time on open enrollment to avoid regrets

According to surveys, many people spend minimal time choosing benefits, with 49% of benefits-eligible employed Americans spending less than 20 minutes reviewing workplace benefits at open enrollment time. However, it's crucial to take the time to fully understand your choices, as 53% of respondents eligible for workplace benefits through their employer regret the choices they made during last year's open enrollment period. The top reasons cited include failing to adjust their benefits in connection with lifestyle changes, missing the deadline, and not understanding their options or the benefits they chose.

It is wise to anticipate cost issues in 2026 and get ahead of the game for 2025. Even if your company has not yet passed on additional costs to workers for the upcoming year, it is likely that employees will experience changes in the future. Ihrke predicts that many employers will offer new carriers and different plan options or pass on more costs to employees as they try to manage significant cost increases that are expected to occur over the next several years.

To join the CNBC Workforce Executive Council, apply at cnbccouncils.com/wec.