How to Evaluate Your Benefits Administration Solution in 2024
Optimize your benefits administration by uncovering the keys to evaluating and selecting the ideal solution for your organization’s evolving needs and priorities.
Success depends on employee wellbeing.
Yet, the more important question in 2025 is what drives wellbeing in today’s complex workplace?
Our yearly workplace wellness report uncovers the key drivers.
While not all trends will affect benefits strategies, being aware of these shifts will help business leaders to be more agile, adaptable, and competitive.
Shortlister’s report examines the six most prevalent benefits and other emerging solutions that will define the year ahead. It also covers the convergence of factors keeping human resources teams vigilant, from managing the vendor selection process to navigating the patchwork of regulatory changes.
This research explores internal and external buyer trends to support brokers, vendors, employers, HR professionals, and consultants in crafting effective human capital strategies for 2025.
Shortlister leverages insights from its extensive network of 8,000 HR, wellness, and benefits vendors covering over 290 products to provide objective insights into benefits, rewards, and people strategies.
This report draws on data from RFPs run through the Shortlister platform between 2021 and 2024. Trends in product popularity are analyzed across these periods to uncover fluctuations in demand over time.
As a result, Shortlister produces independent reports enriched with data-driven benchmarking, fresh insights, and emerging trends.
Today’s benefits portfolios mix traditional offerings with specialty point solutions to address diverse employee needs, creating a complex landscape.
The outcome is often a lengthy vendor procurement process that requires a deeper evaluation of not just cost and features but also alignment with organizational goals, scalability, and long-term value.
The most successful RFPs ran for 45–60 days.
As the size of the employee population increases, so does the complexity, which means that bigger companies (5,000+ employees) take longer to finalize selections.
Large companies included 40% more vendors in their RFPs and took 180 days on average compared to 120 days for smaller firms.
Seasonal patterns also emerged, with the busiest periods for RFPs occurring in March–April and August–September, while Q4 has an evident slowdown.
Some interesting participation trends appeared on the vendor side: larger vendors tend to be more selective in their engagement, while specialty vendors excel within their niche areas.
Newer vendors, meanwhile, are more actively involved in RFPs by smaller companies, where competition is less intense and entry opportunities are more abundant.
Vendor involvement in RFPs varies by product category, with an average of 5.2 vendors per project and a range from 2.4 to 8.3 vendors.
A challenging and uncertain economic landscape throughout 2024 has caused employers to scale back on the flexible post-pandemic climate.
Over the last year, workers have faced mass layoffs, return-to-office (RTO) mandates, and increased performance pressures—all contributing to rising burnout and stress levels.
Recent research by the Johns Hopkins Carey Business School shows that workers’ wellness was highest in 2021 and has been declining since.
Employers, however, are acknowledging these challenges and are tackling them through various approaches.
While there was some uncertainty in the early post-pandemic years – mainly around whether employers would keep wellness offerings – our data solidifies that wellness is a central component of employers’ human capital strategy.
In contrast with the breakneck pace of demand in 2021 and 2022, the subsequent year saw a decline before stabilizing and increasing again in 2024.
Wellness platforms also claimed the second-highest number of total projects, reflecting their strong foothold in the employee benefits space.
Among industries, healthcare organizations stood out as they selected and invested more heavily in comprehensive wellness platforms.
Demand for corporate wellness programs tends to follow a seasonal rhythm, with increased activity in the spring and early summer months, especially around March, April, and May.
In line with broader seasonal trends, interest often drops in late-year months, such as November and December.
Geographic trends revealed heightened interest from the Midwest, reflecting a growing emphasis on employee well-being in this region.
Here’s a keyword map that illustrates how brokers searched for the product within our platform:
Wellness platforms had an average of 5.9 vendors engaged per project, highlighting the need for strategic evaluation to select the right mix of services.
Pricing models for these platforms are typically based on a PEPM (per employee per month) structure for licensing and coaching.
However, the total cost often exceeds the initial base rate, considering that most vendors in this space charge additional fees for supplementary services such as health screenings, physician forms, and data feeds.
Given the complexity of vendor offerings, organizations must carefully evaluate potential partnerships to ensure alignment with wellness goals and budget constraints.
With over 187 vendors in our database, the corporate wellness market is as diverse as the organizations it serves. Differentiators exist across the market based on functionality, delivery models, features, cost, communication tools, and reporting capabilities.
Balancing affordability with scalability, Wellworks For You appeals to mid-sized businesses seeking adaptable and cost-effective solutions.
Navigate Wellbeing Solutions, a platform supporting over 1.7 million users, has also solidified its position in the mid-sized company segment by offering a unified, holistic experience.
Enterprise clients turn to WebMD Health Services for its sophisticated platform with enterprise-level security, global capabilities, and cutting-edge analytics — making it an ideal partner for multinational organizations.
On the other hand, WellRight supports mid-to-large businesses by promoting long-term behavioral changes in employees through engaging, habit-forming wellness programs.
Meanwhile, other vendors like Vitality Group, Sonic Boom Wellness, Sharecare, Reward Gateway, Personify Health, HealthCheck360, Health Designs, Better You, Asset Health, and Aduro continue to innovate, each bringing unique strengths to the evolving wellness ecosystem.
Over the last year, we have entered an era of benefits optimization where every dollar matters, and employers are looking to maximize the value of their benefits portfolio. Still, corporate wellness programs continue to be a central part of employers’ evolving well-being strategies.
Studies indicate employers are maintaining their commitment to employee well-being, allocating approximately $275 per employee in 2024.
Nearly 85% of large US employers offer wellness programs, and the market is expected to reach $94.6 billion by 2026.
Election years often lead to changes in employee benefits laws, and 2025 will likely bring some adjustments.
One of the most significant updates in the last year came from the Department of Health and Human Services (HHS), which has implemented stricter privacy standards for reproductive healthcare data under HIPAA.
Employers offering self-funded or fully insured health plans that include wellness tools, mobile apps, or other health-related services must comply with these heightened privacy protections.
In addition to HIPAA, the Federal Trade Commission (FTC) has tightened regulations on the handling of health data through its Health Breach Notification Rule (HBNR). This rule extends to companies dealing with personal health information, even if HIPAA does not directly cover them.
Employers are also turning to technology and data to assess what valuable wellness programs deliver to their workforce. Wellness dashboards, whether developed in-house or by vendors, offer insights into program usage and effectiveness.
These dashboards can be extremely helpful in tracking improvements in well-being and program participation and identifying where vendor programs are either succeeding or failing to deliver value.
Even beyond that, technology creates more touchpoints with employees, supports communication-campaign efforts, and enables data-driven decision-making.
Emerging wellness models also aim to address broader systemic barriers to health, such as the social determinants of health (SDOH) and organizational policies.
There is a growing recognition that factors like income, housing, job design, and flexibility significantly influence employee well-being.
Since their inception in the 1930s to help employees tackle alcoholism, employee assistance programs (EAPs) have greatly expanded their scope and serve as a vital resource in the workplace.
They provide support for mental health, legal and financial challenges, childcare, and eldercare, and even offer managers guidance on resolving employee conflicts.
Although historically, these programs have been underutilized, new models are helping EAPs fill gaps in behavioral health support.
Using 2021 as a baseline for market interest, 2022 marked a noticeable increase in employee assistance programs. While the momentum slowed slightly in 2023, it rebounded strongly in 2024, reaching its highest point in the past four years.
These findings suggest a consistent upward trend as organizations increasingly prioritize employee well-being and mental health support.
While EAP procurement projects take place throughout the year, interest typically peaks between May and July each year, likely driven by mid-year organizational initiatives and employee well-being efforts.
Activity tends to decline toward the end of the year, particularly in November and December, coinciding with holiday periods and reduced corporate focus.
Here’s a keyword map that illustrates how brokers searched for the product within our platform:
On average, 5.8 vendors were involved per project, and EAPs had the highest number of projects in 2024, further solidifying their position as a staple in benefits packages.
Typically, pricing models are structured around the number of sessions offered, such as three-, six-, or nine-session packages. Employers need to clarify with the vendors what is included in each model and whether additional fees apply beyond the base offerings.
EAP and wellness platform projects also stand out for their consistency in vendor count and selection timeframes.
Shortlister’s EAP list features 90 vendors for employers to partner with, each offering solutions to support employees with personal and professional challenges.
ComPsych stands out as one of the world’s largest providers of multifaceted employee assistance programs, offering access to holistic care, global consistency, and enterprise support.
Headspace is well known for its meditation app but has expanded into the EAP space with a continuous care model. Their EAP offers on-demand coaching, therapy options, and a range of tools and services for employees and their families.
TELUS Health’s EAP provides around-the-clock support, offering personalized, holistic care with a human touch that seamlessly integrates with other benefit programs.
Similarly, Ulliance is known for its flexible and convenient EAP, which addresses mental health needs through its high-touch, high-tech, customizable counseling models.
Other key players shaping the EAP space include but are not limited to, Modern Health, Spring Health, CuraLinc Healthcare, and Canopy, each bringing unique and innovative approaches.
EAPs have become an essential part of employees’ benefits frameworks, with nearly 90% of large organizations adopting them. In the US, the EAP market is valued at $4.5 billion and is poised for significant growth over the next five years.
As employers modernize their EAP offerings, investments in these programs are expected to rise.
According to the 15th Annual Employer-Sponsored Health and Well-being Survey, 37% of employers already use a modernized EAP model, with another 30% planning to adopt one by 2025.
Even though there haven’t been any significant legislative changes targeting EAPs in 2024, the broader policy landscape surrounding mental health, substance use, and workplace well-being will continue to evolve in the year ahead.
The latest EAP models go beyond traditional referral mechanisms and have a broadened scope of services to connect employees to care seamlessly.
With the majority of cases (69%) using technology-based care over traditional in-person visits, it’s clear that digitalization and teletherapy are reshaping how support is delivered.
However, even beyond telephonic or video sessions, care options such as coaching, text therapy, and on-site counseling are being added to improve wait times.
Employers are expanding the traditional three or five sessions to higher limits, allowing employees to resolve their concerns more thoroughly within the EAP framework and reducing the likelihood of requiring longer-term care.
The United States is grappling with both an opioid epidemic and a growing mental health crisis. Behavioral health needs are steadily increasing, but the persistent shortage of behavioral healthcare providers makes accessing mental health services even more challenging.
As of August 2024, over one-third of the US population – approximately 122 million people – reside in designated Mental Health Professional Shortage Areas.
The lack of mental health support is evident in workplace trends.
Since 2017, leave-of-absence claims citing mental health issues have increased by 300%. In the past year alone, 74% of legal and HR professionals reported an increase in mental health accommodations or leaves.
The importance of behavioral health access and treatment in benefits packages has become undeniable.
While demand for mental health services climbed during the pandemic, it has since plateaued, signaling a stabilization in employer-driven mental health initiatives.
Our data indicates that new initiatives slowed in the past year, suggesting that employers may feel their current mental health support is sufficient for now.
When it comes to industry-specific patterns, technology companies have emerged as leaders in providing robust mental health offerings.
Peaks are noticeable in spring months, particularly April and May, across multiple years – with May being National Mental Health Awareness Month.
In the latter half of the year, September and October show elevated activity, suggesting a cyclical rise in interest during these periods.
On the other hand, winter months like December and January show decreased activity, likely influenced by reduced organizational activity or vacation periods.
Across the US, mental health projects were concentrated in coastal regions, where there is a stronger prioritization of these solutions.
Here’s a keyword map that illustrates how brokers searched for the product within our platform:
Over the last year, each RFP engaged, on average, 4.3 vendors.
Our research also shows that the projects included more specialized providers catering to unique needs.
When selecting a vendor, employers typically evaluate features such as:
These are all structured on a PEPM pricing model.
Integrated services have also become popular, as they allow organizations to combine offerings for greater value. For example, packages may include platform access with coaching or a comprehensive bundle of platform, coaching, and clinical services.
The data we’ve gathered also reveals that companies frequently bundle EAP with mental health solutions.
However, it’s important to note that multi-solution RFPs – ones that combine mental health with other categories – took 30% longer to complete.
With almost 220 vendors, the mental health category is among the most diverse and rapidly growing benefit segments.
Existing vendors are increasingly expanding their portfolios, venturing into adjacent markets, and exploring opportunities to innovate and diversify their offerings.
To broaden access to care, Cigna’s Evernorth Health Services is introducing a new behavioral health practice with a plan for nationwide availability by early 2025. Evernorth’s behavioral health solutions provide personalized, proactive care by integrating advanced data across medical, pharmacy, and behavioral health services.
Virtual therapy provider Talkspace uses advanced data integration to strengthen personalized mental health care. In 2024, Talkspace has also expanded access through strategic collaborations with organizations like Bicycle Health, Medicare, and Wellbeing at Work.
Similarly, industry leader Spring Health is partnering with Highmark Health to increase mental health access by 40%. Spring Health’s platform creates care plans based on individual data, guiding employees to appropriate services like coaching, therapy, or medication.
TELUS Health also stands out in the behavioral health field as it provides best-in-class tools for care, as well as 24/7 support and resources for managing stress, anxiety, or other challenges.
Increasingly, more behavioral health companies are venturing into underserved markets by providing targeted support for substance use and other addictions. ALAViDA Substance Use, a product of LifeSpeak Inc., provides evidence-based therapeutic approaches to substance use, while Pelago’s virtual clinic provides support for various addictions, including tobacco and alcohol.
Modern Health has partnered with Charlie Health and Equip to expand its mental wellness platform. The addition of virtual intensive outpatient and eating disorder programs complements its already extensive app, which combines therapy, coaching, and digital resources to support employees worldwide.
Aside from these vendors, there are a number of other companies in the space that are positioned for growth, including BetterHelp, Headspace, and Lyra Health.
As mental health awareness has grown, employers have reported an increased demand for behavioral health benefits, especially among younger generations.
Contributing factors to these trends include work-life stress, job insecurity, social isolation, and limited support systems, all of which play a part in the prevalence of mental health challenges.
Over the last year, four out of five employers noticed a rise in the use of behavioral health benefits.
In fact, a recent survey by the Employee Benefit Research Institute found that 24% of employees wanted more benefits and resources to support their emotional well-being and mental health.
Given these trends, mental health remains a priority for employers, with a strong focus on improving access and reducing cost barriers. For these reasons, 79% of survey respondents identified access as a top mental health priority for 2025.
In 2024, we saw public policy play a greater role in expanding mental well-being.
On September 9, the Biden administration finalized a rule requiring health plans to cover mental health and addiction care on the same terms as other types of care.
Building on the 2008 Mental Health Parity and Addiction Equity Act, this rule addresses the disparities in access to mental health and substance use disorder services and likens them to medical or surgical care.
According to a press release from the Departments of Labor, Health and Human Services, and the Treasury, enforcement has revealed that significant barriers still exist.
Employers should prepare for the rule’s impact on mental health coverage, with changes taking effect in January 2025.
While employers have made significant progress in addressing behavioral health, the growing demand for services and access to them remain pressing issues. Thus, companies are looking at innovative, impactful, and cost-effective ways to support employees.
In particular, digital platforms emerged as a popular solution as they allow on-demand counseling services, telepsychiatry, and digital therapy.
There is also an expanded focus on resiliency and new areas of mental health, like substance use disorders, maternal mental health, and neurodiversity.
To create a psychologically safe work environment, employers are also training managers to identify employees facing mental health challenges, offer support, and connect them to helpful resources.
On the technological front, mental health apps are evolving with new digital biomarkers and personalized care algorithms, which allow for continuous monitoring of mental well-being.
Every year, more than half of US adults experience back, neck, shoulder, or other musculoskeletal (MSK) pain. Even though the number of people with MSK conditions has remained the same, the expenses for treatment have doubled in the past decade.
In fact, employers spend approximately $20 billion a year in direct costs on MSK conditions. Indirect costs to employers may be five times more, or $100 billion a year.
The healthcare and economic impacts of MSK conditions are far-reaching and significant, leaving employers to face the challenge of supporting employees through prevention and intervention strategies.
During the pandemic, there was an increased awareness and demand for ergonomic solutions as remote work surged and employees had to work in unconventional setups.
For these reasons, corporate musculoskeletal programs have been trending upward over the last few years, with 2024 being the first year that these solutions have seen a decline.
Interestingly, manufacturing companies demonstrated a consistently higher interest in MSK solutions, likely due to the physical demands of their workforce.
Shortlister findings indicate that employer interest in MSK programs peaks in the first half of the year, particularly around May.
Here’s a keyword map that illustrates how brokers searched for the product within our platform:
The proposals for ergonomics and MSK programs typically involve an average of 2.4 vendors per project, the lowest among comparable categories.
MSK programs typically operate on a licensing model and are priced either per year or per participant. Services often include consultations, data analytics with reports, and physical therapy.
However, additional costs may apply depending on the scope of services or specialized add-ons required for the program.
Physical therapist-guided digital solutions offer innovative approaches to musculoskeletal (MSK) care.
Hinge Health is a digital clinic that addresses musculoskeletal pain through personalized care plans that incorporate wearable technology and virtual physical therapy. Research highlights annual savings of $622 to $1,682 per user while reducing surgeries and improving mobility.
Sword Health combines licensed physical therapists with motion-sensor technology to deliver tailored digital MSK care. Studies have shown net annual savings of approximately $1,634 and notable reductions in surgeries, ER visits, and opioid use.
Vori Health is a virtual-first solution that integrates medical care, physical therapy, and lifestyle coaching, showcasing improved patient satisfaction and adherence, particularly in chronic pain management.
Other notable vendors in the MSK space include RecoveryOne, which focuses on holistic virtual care through multidisciplinary teams to accelerate recovery, and Omada Health, known for combining virtual coaching with PT-guided exercises to offer scalable solutions for low-back pain.
MSK pain is complex; therefore, its treatment requires a multi-pronged approach, as one-size-fits-all programs rarely address all employees’ needs.
For these reasons, employers are introducing holistic and diverse offerings that include a team of health coaches, physicians, physical therapists, and other specialists for behavioral support and lifestyle change.
Investment in MSK health is set to expand over the next few years, according to research from WTW.
In 2022, 35% of employers had considered or already offered musculoskeletal support. Today, 51% of employers plan to expand their investments in MSK care; looking forward two years, that number jumps to 80%.
On May 2, 2024, the Occupational Safety and Health Administration issued enforcement guidance clarifying the recordkeeping requirements for work-related musculoskeletal injuries and illnesses.
This update clarifies how certain treatments commonly offered in MSK programs – such as stretching exercises, therapeutic movements, or Active Release Techniques – may be classified for OSHA recordkeeping.
The pandemic forced innovation in virtual care delivery for numerous chronic conditions, including musculoskeletal health.
While in-person care isn’t going away, employers hope to address some of the most common barriers to care – cost, motivation, and convenience – with digital solutions.
In 2025, 83% of employers plan to provide virtual MSK management and physical therapy to their employees, with the industry set to expand even further.
Furthermore, traditional MSK treatments are being supplemented with alternative therapies, like functional movement therapy and regenerative medicine.
The growing interest in non-pharmaceutical pain management is also driving the popularity of chiropractic care, massage therapy, acupuncture, and other holistic approaches.
The prevalence of diabetes has been growing steadily, and it is currently estimated that one in three Americans will be diagnosed with diabetes at some point in their lives.
Along with its widespread prevalence, diabetes carries numerous lifelong health risks and complications, making it the most expensive chronic condition in the country.
The estimated total annual cost of diabetes is $413 billion, and it accounts for more than $106 billion in indirect expenses through reduced productivity, increased absenteeism, and disability.
Over the past three years, the demand for diabetes programs has fluctuated significantly.
During the pandemic, interest in diabetes rose as employers focused on chronic condition management. However, our data reveals a more tempered approach to investments in diabetes programs over the past two years.
Diabetes management programs exhibit clear seasonal patterns, with spikes in activity often occurring in the spring months, particularly March and April, and again in early summer.
Geographic patterns reveal that diabetes management programs remain more common in the Southern states, likely correlating with the higher diabetes prevalence and need for targeted interventions in these regions.
Here’s a keyword map that illustrates how brokers searched for the product within our platform:
An average of 8.3 vendors participated in diabetes projects, the highest across categories.
In other words, the diabetes programs market has a strong interest and diverse solutions, requiring careful evaluation during vendor selection.
Pricing plans for diabetes and related conditions are typically structured on a per-member-per-month (PMPM) basis and include modules such as:
Vendors often offer bundled options to address multiple chronic conditions, which can improve health outcomes and help employers contain costs.
In Shortlister’s sizable diabetes programs category, which has 61 solutions, vendors typically tackle one or more aspects of the diabetes journey—prevention, management, or reversal.
For example, Virta Health stands out with its nutritional ketosis approach, using personalized low-carb diets and virtual support to reverse type 2 and prediabetes. Research shows Vitra’s approach results in a 1.2% HbA1c reduction after 2 years, with 71.1% of participants achieving diabetes remission or improved glycemic control.
When it comes to managing diabetes, companies like Dario, Omada Health, and Vida Health offer behavioral modification programs that include clinical monitoring, lifestyle coaching, and holistic health tracking.
These solutions have also shown clinical effectiveness, with studies showing HbA1c reductions of 0.23% to 1.35% and improved patient outcomes, including lower hospitalization rates.
Ochsner Connected Health excels in remote patient monitoring (RPM), using digital tools and licensed clinicians to provide real-time blood glucose tracking and personalized diabetes management advice.
One of the most impactful steps employers can take to avoid costly interventions is expanding their benefits to include targeted solutions for diabetes prevention and management.
Analysis of the market shows that many companies plan to invest more in these areas over the next few years.
Willis Towers Watson’s Best Practices in Healthcare Survey reveals that diabetes is a top focus for healthcare investment, ranking second only to behavioral health.
The data shows a significant upward trend in organizations prioritizing diabetes management, with 45% taking action in 2022, increasing to 59% in 2024, and projected to reach 84% by 2026.
On the policy front, the outgoing Biden administration has made notable actions.
For Medicare beneficiaries, the Inflation Reduction Act capped the cost of insulin at $35. In addition, Medicare coverage has been broadened to include diabetes screening and A1C tests.
The Medicare Diabetes Prevention Program, which emphasizes lifestyle and dietary changes, has also been extended through 2027.
State-level efforts have complemented these federal actions. Many states are designing innovative diabetes management programs, utilizing Medicaid 1115 waivers.
Science and technology continue to make remarkable progress in preventing and managing metabolic health conditions.
To start, continuous glucose monitors are already transforming diabetes care by providing constant glucose readings without the need for frequent blood draws.
In 2024, the FDA approved them for over-the-counter sales, potentially broadening their reach beyond diabetes management to include prevention and early intervention.
GLP-1 medications have also emerged as a new approach to weight loss and blood sugar management, with great potential for diabetes prevention. For overweight or obese adults, they’ve been shown to reduce the risk of developing type 2 diabetes by an impressive 94%.
Similarly, weight management has reached an inflection point over the past year with the breakthrough developments in GLP-1 medications. The new medication-assisted weight-loss treatments have not only captured widespread attention but have also begun to reshape how we approach obesity.
The impact is already evident: for the first time, the CDC has documented a decline in obesity rates across the United States, which now stands at 40.3%.
Our figures show that interest in weight management solutions remained steady in 2021 and 2022.
However, over the past two years, these solutions have become top of mind for employers, leading to a significantly increased demand for related initiatives.
By 2024, interest has more than doubled compared to 2021, highlighting the growing importance of weight management as a key element of workforce well-being strategies.
Demand for weight management programs peaks between April and September, when organizations actively issue the most RFPs.
These seasonal patterns align with mid-year strategy reviews and open enrollment preparation, making it the prime time for organizations to invest in health and wellness solutions.
Here’s a keyword map that illustrates how brokers searched for the product within our platform:
Weight management projects typically involve engagement with an average of 5.4 vendors per project, often including several comprehensive platform providers.
Given the state of flux in the weight management market and their diverse service delivery models, pricing models are relatively varied and inconsistent.
Over the last year, the weight management landscape has continually evolved, with 62 vendor solutions currently in our system.
As innovation shapes this space, we anticipate significant advancements and updated approaches from leading vendors in the coming year.
Currently, Wondr Health tackles weight management through a digital behavior-change program that blends metabolic, emotional, and physical health strategies. However, their recent launch of Wondr Plus also provides more affordable access to GLP-1 medications.
Calibrate adopts an evidence-based approach, pairing GLP-1 prescriptions with a personalized, year-long coaching plan designed to reset the metabolic system for sustainable results.
Similarly focused on novelty personalized care, Form Health connects employees with physicians and dietitians via telemedicine to craft weight loss plans that address medical, nutritional, and behavioral needs.
Among the various approaches, we have Ochsner Connected Health, which improves patient outcomes through digital tools and remote monitoring, while Optum Workplace Well-being integrates coaching and digital platforms to foster healthier habits among employees.
WW Health Solutions, Vida Health, and Noom are also key players in providing accessible, effective weight management options in the industry.
Employers have long focused on obesity prevention due to its serious health effects and high healthcare costs. Recently, this focus has grown stronger.
Industry data shows a steady increase in the number of companies addressing obesity and weight management. In 2022, 30% of employers had already launched or planned initiatives. By 2024, that figure rose to 43%, and it is expected to reach 83% by 2026.
Additionally, 79% of employers reported increased interest in obesity medications, such as GLP-1.
Many employers worry about the long-term costs of these medications. Still, according to PWC analysts, these treatments could actually help lower overall health plan expenses by reducing the cost of care for conditions like diabetes, heart disease, and cancer.
As it currently stands, access to the latest anti-obesity medications remains inconsistent. According to KFF, only 13 states currently cover GLP-1 drugs specifically for weight loss for Medicaid enrollees.
However, in one of its final major policy moves, the Biden administration proposed a rule allowing Medicare and Medicaid to cover weight loss drugs for patients with obesity.
If approved under the incoming Trump administration, this rule could significantly broaden access to effective but costly treatments like Wegovy and Zepbound.
To stay relevant in the evolving obesity treatment domain, weight management solutions must adapt and clarify their role. Keeping up with shifting consumer preferences will be crucial for success in the upcoming year.
An increasing number of weight management programs are incorporating GLP-1 medications, whether compounded or brand name, alongside other types of treatments as part of their offerings.
They have introduced specialized nutrition support, counseling, and GLP-1 “weaning” programs for employees who decide to discontinue the medication while maintaining their weight loss.
In addition to medications, companies are also noticing the value of digital services, which can scale easily and meet the growing demand for virtual support through phones or computers.
While the benefits discussed above directly influence how employers design and implement healthcare and well-being initiatives, emerging trends signal a broader evolution in strategy.
One “macro-trend” rippling throughout the entire benefits and wellness space is the development in technology and the digitalization of these solutions.
While the COVID-19 pandemic was a catalyst for change and solidified the use of telehealth services, virtual care models have since gained momentum with employees, organizations, and providers alike.
According to the 2024 State of Digital Health Purchasing survey, most employers (75%) have increased investments in digital solutions over the past two years.
The survey stated that organizations plan to maintain or continue investing in digital solutions for diabetes, musculoskeletal disorders, substance use disorders, and social determinants of health.
Considering the demographics of today’s workforce, the demand for digital-first solutions is unsurprising for Gen Z and Millennial digital natives.
Over the next few years, we also expect to see employers proactively support the behavioral needs of employees through combined mental health and EAP solutions.
While employers in the US have made progress in mental health, particularly in reducing stigma, to improve access to care, many are consolidating and expanding EAPs with mental health solutions. EAPs are a great “starting point” for counseling and referral services; however, collaborating with mental health providers ensures that employees can get longer-term care or specialized help.
Comprehensive and holistic coverage is a trend not just in mental health but also across the corporate wellness industry. Today’s wellness programs have shifted from siloed health initiatives to comprehensive strategies that are multidimensional and consider the broad spectrum of employees’ needs.
Furthermore, we can expect employers to tackle major drivers of healthcare costs – diabetes, obesity, and heart disease through targeted interventions with cardiometabolic programs.
As business leaders navigate 2025, they have an unparalleled opportunity to redefine workplace well-being, shaping a future where employee health and organizational success thrive hand in hand.
Senior Content Writer at Shortlister
Browse our curated list of vendors to find the best solution for your needs.
Subscribe to our newsletter for the latest trends, expert tips, and workplace insights!
Optimize your benefits administration by uncovering the keys to evaluating and selecting the ideal solution for your organization’s evolving needs and priorities.
The COVID-19 pandemic changed the way the world lives, especially how its people work. 2020 and the first half of 2021 brought new challenges to companies and their employees.
Unlock the secret to a longer, healthier, and happier life: It’s not just about steps and veggies, it’s about the power of meaningful social connections.
Explore Shortlister’s corporate wellness industry trends for 2022, addressed in collaboration with outstanding CEOs, HR practitioners, and wellness professionals.
Used by most of the top employee benefits consultants in the US, Shortlister is where you can find, research and select HR and benefits vendors for your clients.
Shortlister helps you reach your ideal prospects. Claim your free account to control your message and receive employer, consultant and health plan leads.