Blog

Turn Rising Healthcare Costs Into a 2025 Strategic Advantage

Written by TBC Benefits | May 7, 2025 1:00:00 PM

In 2025, U.S. employers are bracing for a projected 5.8% to 8% increase in health insurance costs—driven by higher medical service prices, increased healthcare utilization, and the rising demand for expensive prescription treatments like GLP-1 weight-loss drugs.

For many employers, especially small and mid-sized businesses, these rising costs create pressure to react quickly—often by shifting costs to employees, reducing benefits, or scrambling for cheaper coverage. But these short-term tactics can backfire, damaging employee satisfaction, talent retention, and long-term financial predictability.

At TBC Benefits, we believe there’s a better way. As your partner, consultant, and advisor, we help turn healthcare volatility into a strategic advantage for your company and your people.

What’s Driving Healthcare Costs Up in 2025?

Several converging factors are responsible for the sharp rise in healthcare costs:

  • Medical inflation — Higher prices for hospital stays, surgeries, and outpatient services.

  • Increased utilization — Employees are catching up on delayed care, driving up claims.

  • Costly prescription trends — Weight-loss and specialty drugs (e.g., GLP-1s) are rapidly increasing plan costs.

  • Greater employee expectations — Workers now expect comprehensive mental health and preventive care benefits.

Common Employer Reactions That Hurt More Than Help

In response, many employers lean on outdated cost-cutting methods like:

  • Raising deductibles or employee premium contributions

  • Limiting provider networks without considering access or quality

  • Ignoring plan design optimization opportunities

The result? Increased employee frustration, more administrative burden on HR, and higher long-term costs.

 

 

A Strategic Broker Partner Can Shift the Narrative

At TBC Benefits, we strive to go beyond the traditional broker role. Our goal is to serve as a strategic partner to your leadership team—helping you analyze risk, forecast costs, and build a smarter, long-term benefits strategy that aligns with your goals.

Here’s how:

1. High-Performance Networks

We help you evaluate and implement high-performance networks that prioritize quality, access, and cost efficiency—without compromising employee experience.

2. Specialty Drug Management

Our team works with you to help manage high-cost drugs through smarter formulary and plan design, step therapies, and employee education.

3. Value-Based Insurance Design

We help design plans that encourage preventive care and reward smart healthcare decisions—reducing long-term claims and improving outcomes.

4. Predictive Cost Modeling

Using claims data and industry benchmarks, we provide forecasting tools that support better renewal negotiations and long-term planning.

5. Employee Education & Empowerment

We provide personalized support, learning opportunities and communication strategies that help employees understand their benefits, make cost-effective care choices, and take ownership of their health decisions.

 Supporting Your Executive Team and HR Leaders

Your leadership team needs more than a spreadsheet—they need a strategic partner who can:

  • Provide data-backed insights at budget time

  • Simplify complex renewal options

  • Benchmark your costs against industry peers

  • Support compliance and risk mitigation

💬 “With our extensive background on the carrier side of the business, we don’t just show you your renewal; we show you what’s driving it—and how to take control of it.”

Supporting Your Employees

We don’t just serve your leadership—we’re here for your people, too. 

  • Clear benefit communication to reduce confusion and increase utilization

  • Onboarding support to help employees understand their plan

  • Proactive care guidance to help them make smarter, lower-cost choices

  • Wellness tools to reduce claims and improve outcomes

  • On-site lunch and learns to engage employees directly, answer questions in real time, and build confidence in using their benefits effectively

Turning Costs Into a Competitive Advantage

Rising costs are a reality—but with the right strategy and the right partner, they don’t have to be a liability. TBC Benefits helps you:

  • Make smarter plan decisions

  • Empower employees with better information

  • Protect your business from unpredictable cost spikes

Ready to rethink your approach to employee benefits? Let's talk!