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Benefits November 20, 2025
Managing Health Care Costs, Providing Value to Employees Are Top of Mind for Health Systems
Aon’s 2025 Benefits Survey of Hospitals found health systems wants their employees to understand both the benefits available and how valuable they are.
Reported by Emily Boyle
Art by Melinda Beck
Managing rising employee health care costs has surpassed providing access to mental health services as the top priority for U.S. hospitals, according to Aon’s 2025 Benefits Survey of Hospitals.
U.S. employer health care costs have surged to historic highs, with an expected 9.5% increase in 2026—bringing the total cost per employee to more than $17,000 from $15,860 in 2025, Aon found. With that, the cost of GLP-1 medications for diabetes and weight loss now represents half of the top 10 drugs by spending.
Health system employers’ concern over managing health care costs has steadily increased since 2023, coming back to the No. 1 spot this year for the first time since 2020. Among respondents, 93% identified cost management as their primary concern in 2025.
“Health systems want to … balance making sure their employees can afford care while always finding ways to manage costs so they can continue to provide benefits that are valuable,” says Sheena Singh, senior vice president of Aon’s national health care industry practice.
Communicating the Value of Benefits
Singh emphasizes the importance of employees understanding the value of their benefits. If they do not, employers might not receive the return on investment for those benefits that they hope for, she says.
Only 14% of health system employers surveyed said they believe employees understand the value of the total rewards package they receive, an 11-percentage-point drop from 2024.
“As health systems align resources, adequate assessment of which benefits are meaningful to employees relies on employees accurately understanding the value of their current benefits,” the report stated.
Aside from wanting their employees to understand the value of their benefits, employers also said they prioritized having their employees to understand the benefits themselves. Among all respondents, having employees understand the benefits offered to them was their second-highest priority—up seven places from the 2024 survey.
To help drive understanding, Singh says employers can utilize more strategic communication campaigns.
In particular, “consider the needs of an entry-level nurse,” Singh says. “Many health systems struggle with retaining nurses during the first two to three years. After that, they’re in and they want to stay.”
To keep new nurses engaged, Singh suggests health systems offer career development opportunities, tailored messaging and structured onboarding programs.
Among respondents, 62% offered career advancement programs, and 9% were considering implementing them. Messaging can come from the nurses’ direct managers or champions within their field. Through onboarding, mentorship can come from leaders at work or even their own peers.
Communicating the value of benefits is a “year-round, everyday effort,” says Singh. “It has to be multi-channel. … You have to meet people where they are.”
Benefits to Communicate
Aside from promoting the typical medical, prescription and dental benefits offered, health system employers can also offer student loan payment matching, says Singh. She says that while it may not be feasible for an employer to provide matching for employees in every talent segment, health systems can focus on nurses and physicians, whose positions require advanced degrees and often result in debt.
Public Student Loan Forgiveness, a federal program established by Congress in 2007 to encourage Americans to pursue public service by promising to forgive their remaining federal student loans after 10 years of both qualifying employment and monthly payments, is another avenue of relief available to many health care workers. The majority of health systems are nonprofit and likely qualify for the program, says Singh.
In addition, while prioritizing access to mental health services has dropped six ranks from the top priority since last year, 79% of employers still rate it a “high” priority. Mental health benefits have become more accessible despite persistent affordability challenges, according to the research.
Well-being programs can be of value to employees as well, with 50% of respondents reporting they offered employees a “financial incentive” to engage with such programs. Most (62%) with an incentive offered at least $501 per year.
Moreover, nearly three-quarters of health plans reviewed by the survey offered at least three tiers of coverage (within the employer/health system itself; in-network; and out-of-network), with 63% of health systems offering high-deductible health plans. As hospitals hire more talent from their patient services area, 33% offer a separate plan for “out-of-area” employees. Singh says health system employers can also steer employees to come to their own facilities, potentially by offering care at a lower cost.
Supporting Workforce Needs
Health system employees also value perks that are not “benefits,” per se, says Singh. More flexibility related to scheduling, especially taking childcare needs into consideration, has been well-received by employees, she says. More than half (55%) of employers surveyed said they offered flexible working hours for non-clinical staff, and more than one-third (36%) offered flexibility in the number of days worked, such as offering four 10-hour days per week.
Employees also value recognition, Singh says. Of surveyed employers, 62% had formalized employee recognition programs and platforms in place. Singh says these programs can focus on acknowledging staff that have exemplified the mission of the organization, as well as the values it represents.
Talent Retention
Employers reported that annual compensation adjustments (70%) and health and ancillary benefits (69%), respectively, were their two most effective talent attraction and retention strategies this year. Beyond those, an organization’s culture and increased flexibility tied for third, at 62% each.
“Culture and flexibility [do] not necessarily [mean] ‘investing dollars,’” says Singh, “but [they do mean] how [employers] demonstrate [they] are making it easier for nurses and other talent segments to feel like there’s a reason they’re here.”
Aon collected survey responses between May and June among 155 health systems representing more than 1,500 hospitals and more than 3.6 million employees.
