The adoption of technology — particularly AI and advanced data analytics — seems to have matured past the stage of technology for technology’s sake this year, to become a more strategic ally that empowers people to do better work.
According to the brokers, CEOs, and health plan leaders who contributed to our 2025 Healthcare Benefits Insights Report, this year marked a critical turning point for employers, more and more of whom are embracing innovative healthcare strategies.
Here’s a look at the four big trends that defined the healthcare benefits space in 2024:
Customization and transparency took center stage
For decades, employers have relied on one-size-fits-all solutions that are simple to administer but financially draining. And with no visible ceiling to how high premiums and healthcare costs could rise, employers increasingly sought out alternatives to the “big 4” insurance plans simply to keep their businesses alive.
Brokers and TPAs are stepping up as architects of customized plans, offering tools to lower costs and improve care without adding administrative headaches. Price transparency tools and unbundled solutions gave employers the flexibility to design health benefits that better align with both their workforce needs and budget constraints.
Adding to the calls for more transparency, PBMs have been a target of regulators. Mid-2024, the Federal Trade Commission released a long-awaited report slamming the PBM industry for manipulating the drug supply chain to profit at the expense of patients and independent pharmacists. In the report, the FTC highlights how unchecked consolidation has created a market where the six largest PBMs control almost 95% of the prescriptions filed in the U.S., allowing them to influence which drugs are available — and at what price.
What may come of this? Employers are increasingly arming themselves with this information as a way to reimagine benefits — not as a burden, but as a strategic and financial advantage. This shift allows for more personalized healthcare offerings, helping companies gain control over costs without sacrificing employee satisfaction.
Direct Primary Care continued to gain traction
In recent years, Direct Primary Care (DPC) has emerged as an alternative to traditional fee-for-service models and continued to gain traction this year, with growth continuing the same upward trajectory as previous years.
The model, which offers employees unlimited access to primary care usually at no out-of-pocket cost to them, significantly reduces both the access and financial barriers many people face to getting basic preventive care, and ultimately leads to better long-term health outcomes.
The DPC model has also proven to provide an environment where physicians can manage smaller panels with longer appointment times, leading to less burnout and attrition.
By eliminating insurance middlemen and reducing overhead costs, DPC proved to be a viable option for employers looking to improve access to care. Employers, in turn, benefit from higher utilization of preventative care by saving on downstream costs like hospitalizations and specialist visits. DPC offers a return to relationship-driven care where providers have the time to know patients deeply and proactively manage their health.
AI and data analytics transformed health plan administration
In 2024, AI and data analytics continued to gain ground as powerful tools for streamlining health plan administration. We’re moving beyond the fear that robots are going to take peoples’ jobs and seeing more considered approaches in using technology to allow humans to be more human.
Google, Microsoft and GE Healthcare say they’ll power the next wave of AI advancement. But executives are split on how to offer the tools to providers responsibly — and whether all clinicians are equally ready for them.
New technologies like AI and advanced analytics are starting to do more than just crunch numbers — they’re empowering people and could help rapidly solve workforce challenges. Implementation, however, can be difficult, pushing organizations to consider less risky administrative and back-office tasks first before setting them loose in a patient-facing context or relying on them to make consequential decisions. Whether it’s a chatbot answering benefits questions in seconds or algorithms identifying savings opportunities, these tools do have the potential to turn complexity into clarity.
Progressive benefits brokers as change agents
In 2024, brokers played a critical role in driving the transition to affordable, value-based care models. With 75% of small group health plan sales influenced by brokers, they’ve driven the shift toward healthcare plans that focus on improving health outcomes rather than simply cutting costs, and employees don’t have to choose between paying for care and meeting their basic needs.
According to a recent survey, employers continue to ask their broker partners to help manage health care costs. They are particularly interested in prescription drug management programs (77%) as a cost-control measure, including mandatory generic prescriptions, mandatory mail order, step programs, and negotiating direct partnerships with local health care providers, along with implementing point solutions to target specific health needs (60%); and adding clinical advocacy to help employees become better health care consumers (55%).
Looking Forward: What’s Next for Healthcare Benefits in 2025?
The trends that defined 2024 are likely to continue to shape the healthcare benefits landscape in 2025. As employers continue to innovate and adopt new models, the growing emphasis on personalization, cost containment, and technology-driven solutions will remain essential in addressing rising healthcare costs and improving employee well-being. Those employers who stay ahead of the curve by embracing DPC, AI, and customized health plans will be best positioned for success in the years to come.
