\u201cThis means most employers are looking for alternatives to controlling costs without transferring the cost directly to employees,\u201d said Dianne Gavieres, principal at Normandin Beaudry, during a recent webinar by the organization. \u201cOne of the ways communication can help reduce the rising cost of benefits is by promoting smart usage of the plans [through things like] educational materials.\u201d\n<\/p>\n
Read: 64% of employers cite cost control as top benefits priority in 2026: report<\/a>\n<\/p>\n The survey also found health-care costs are accelerating, from roughly five per cent in 2023 to 10 per cent in 2025. \u201cOur survey gives us important context for these increases,\u201d said Sophie Limoges, principal at Normandin Beaudry, during the webinar. \u201cEmployers said one of their biggest challenges with an ageing workforce is the rise in medical care costs and . . . a major contributor to these rising costs is prescription drugs. They continue to represent one of the most significant risks in benefits plans and their impact on plan costs grows every year.\u201d\n<\/p>\n Having a clear strategy in place will put plan sponsors in the strongest position to realize these savings, she added. \u201cThat means [having] strong carrier governance and cost-control tools in place before the generics hit the market. Generic substitution, managed formularies and step therapy are all examples of cost control measures that can be put in place.\u201d\n<\/p>\n The survey found the No. 2 challenge for employers was managing employee understanding and appreciation (41 per cent). \u201cThe first step towards employee understanding and appreciation is to increase visibility of your programs and benefits, as employees can\u2019t value what they don\u2019t know exists,\u201d said Gavieres. \u201cIncreasing awareness of available benefits and positioning them as part of the broader employee experience is essential to promoting understanding and appreciation and that includes both monetary and non-monetary rewards.\u201d\n<\/p>\n She added total rewards statements put the numbers into perspective and can help facilitate conversations between managers and employees to discuss total rewards in a more comprehensive way.\n<\/p>\n