Three Alegeus market experts share their predictions for the health benefits space in the year ahead.
As we look ahead at 2025, the health benefits landscape is expected to evolve rapidly, influenced by advancements in technology, shifting employee expectations, and ongoing regulatory changes.
Industry experts Duke Janssen, Sandy Gleason, and Kris Saunders share their top predictions for benefits administrators in the coming year:
Artificial intelligence will further streamline manual processes, from enrollment assistance to claims adjudication. It’s important for platforms to mitigate risk prior to implementation. When done well, benefits administrators could rely on AI to deliver tailored, efficient employee experiences.
Fully digital offerings – like virtual cards and item-level payment technologies – will become the standard, integrating benefits into daily spending seamlessly.
Benefit platforms will evolve into ecosystems, embedding financial management tools directly into user experiences for a more cohesive approach.
Anticipate progress on HSA expansion, potentially allowing Medicare, Medicaid, VA Health Care, and Indian Health Services beneficiaries to contribute. This could further establish HSAs as a cornerstone of healthcare finance.
With ongoing challenges for working parents, raising the $5,000 cap on Dependent Care FSAs could become a legislative priority.
Discussions around eliminating these deductions could intensify, though significant changes remain unlikely in 2025.
Preventive care expansions under high-deductible plans, including coverage for chronic conditions, will drive better long-term outcomes and help employees manage costs effectively.
With an increased focus on preventive care, benefits administrators will need to re-educate employees on how to maximize these expanded offerings.
While repeal seems unlikely, shifts in administration or Congress could alter key provisions.
These accounts are gaining traction, but their future could hinge on ACA stability.
Flexible benefit options like LSAs will be essential in addressing mental health needs and menopause support, reflecting broader societal awareness. In SHRM’s 2024 Employee Benefits Survey, menopause benefits were the top health care benefit respondents asked about for the first time, while only 17% of employers offer some level of menopause-related benefit.
Investments in food-as-medicine programs will grow, particularly in the over-65 market. These programs address chronic conditions and preventative health, reinforcing holistic approaches to well-being.
Continued stabilization of COBRA regulations and anticipation of larger changes in U.S. healthcare availability will lead to continued adoption of high-functioning software.
A new administration could introduce non-traditional approaches, creating opportunities and challenges for benefits administrators.
As technology becomes central to benefits delivery, administrators will increasingly collaborate with tech providers to remain competitive. “In previous years, [SHRM’s Employee Benefits Survey] has highlighted the increased prevalence of telemedicine and telehealth services (91%) and mental health coverage (90%). As those percentages have stabilized in recent years, this suggests these benefits are becoming standard, much like dental and vision benefits.”
The future of health benefits is bright but complex. Without knowing what exactly will change in U.S. regulations in 2025, we anticipate that the need for efficient, compliant benefit management will continue to be key.
From leveraging technology to rethinking benefit design, administrators have unprecedented opportunities to innovate and lead. At Alegeus, we’re here to help you navigate the trends and deliver meaningful solutions for your workforce.
What are your priorities for 2025? Let’s shape the future of benefits together.
Duke brings 15 years of experience working with consumer-directed accounts, the health & benefits markets, the Alegeus platform and Alegeus partners – as he works to infuse growth and efficiency for partners in the market. Having held go-to-market, competitive intelligence, sales enablement, and customer experience roles over his Alegeus tenure, Duke is uniquely positioned to provide industry, business, and growth context to consumer-directed account programs.
Sandy Gleason has spent her career in the Consumer Driven Health space leading operational, participant and client teams through the evolution of the industry. Sandy holds a Certified in Flexible Compensation Instructor (CFCI) and Health Savings Account Specialist (HSAS) designation through the Employers Council on Flexible Compensation (ECFC), was a past board member and currently serves on the Education Committee for the ECFC.
With over 25 years in COBRA and CDH benefit administration and technology, Kris is a knowledge leader in how the industry regulations and changes impact how Administrators accurately and efficiently manage their clients’ portfolio of employee benefits.