Employer-sponsored insurance is reaching a tipping point. What was once a predictable 2–4% annual increase in employer health spending has given way to double digit growth, driven by surging drug costs, rising utilization across all age groups, and escalating provider rates. For many employers—especially smaller organizations with less margin for error—absorbing these costs is no longer viable. As economic conditions shift and the labor market cools, the balance of power between employers and employees is changing, opening the door to more aggressive cost-control strategies.

In this episode, host Rachel (Rae) Woods is joined by Advisory Board expert Sally Kim to unpack what’s behind the spike in employer health costs—and what employers are doing about it. They walk through the full “menu” of options now on the table, from benefit redesign and navigation tools to network strategy, direct contracting, and alternative funding models. The conversation explores what these moves mean for health plans and providers competing for commercial lives—and why understanding employer behavior is no longer optional.

We’re here to help:

• Ready-to-Use Slides | Market outlook for employer-sponsored insurance
• Listen | Ep. 232: The rise of ICHRAs: Why some employers are turning to the individual market
• Listen | Ep. 286: A Medicare Advantage reset — and what comes next
• Expert Insight | How employers are combating the ‘new normal’ for benefits costs with unconventional measures

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A transcript of this episode as well as more information and resources can be found on RadioAdvisory.advisory.com.

In 2026, Radio Advisory is diving into the biggest questions shaping the future of healthcare. We aren’t just here to talk about challenges, we’re here to help you determine your next best action. Our first episode of the year drops Tuesday, January 13. Subscribe wherever you get your podcasts.

We want to hear from you. What do you want to hear about in 2026? Where are you seeing opportunities or facing challenges you think we should explore? Email us at podcasts@advisory.com

We’re here to help:

• Read Advisory Board’s 2026 research agenda
• State of the Industry: Protecting access amid funding cuts
• State of the Industry: Managing spend amid rising costs

A top podcast for healthcare leaders, with over one million downloads, Radio Advisory is your weekly download on how to untangle the industry's most pressing challenges to help leaders like you make the best business decisions for your organization.

From unpacking major trends in care delivery—like site-of-care shifts and the rise of high-cost drugs—to demystifying stakeholder dynamics, to shining a spotlight on priorities that may get overlooked, we're here to help. Our hosts and seasoned researchers talk with industry experts to equip you with knowledge to confront today's unanswered questions in healthcare. New episodes drop every Tuesday.