Unpredictable and Unsustainable: CFOs Weigh in on Healthcare Strategies

Employer health benefit costs are on an upward trajectory that has moved healthcare from a routine HR expense to a strategic financial concern.  

According to Mercer's National Survey of Employer-Sponsored Health Plans, average cost per employee rose 6.0% in 2025, and is projected to increase in 2026 — 6.7%, the highest in 15 years.  

The CFO Perspective on Health survey notes that this rate is more than double in general inflation. The average health benefit cost per employee is expected to reach $18,500 this year.  

CFO healthcare attitudes: 

• About 75% of CFOs rank healthcare among their top five operating costs.  

• One in four say their organization absorbed recent increases without broader business impact. 

• The volatile economic environment has made it harder to predict costs and challenges.  

• 77% of CFOs with self-funded plans report that high-cost gene and cellular therapies and continued GLP-1 adoption makeup up a growing population of high-cost claimants.  

• Many report tradeoffs in benefits (38%), wage growth (36%), and prices of products and services (26%).  

To offset costs, some CFOs expressed interest in a defined contribution approach, similar to a 401(k) where employers may contribute a defined amount annually. 45% favor a strong emphasis on plan design changes, such as higher deductibles or modified cost-sharing structures.  

• Roughly 40% expressed some interest in exploring defined contribution approaches to health benefits, with 14% of fully insured employers indicating strong interest compared to a smaller share of self-funded employers.  

• Increasing employee premium contributions drew comparatively less support.  

• Long-term investments in wellness programs, clinical management, and point solutions received more measured endorsement. 

Strengthening Metrics: 53% of CFOs are not confident that long-term, investment-based cost-management strategies are saving money underscoring the need for stronger program-level metrics to validate ROI.   

Join us May 26^th to continue the conversation. During our webinar, “How Employers Are Truly Bending the Cost Curve,” hear from rewards leaders at Bob’s Discount Furniture, Prudential Financial and Marriott about what’s working, what’s not and how to manage healthcare spending.