Great Lakes Wire

Rising healthcare costs and a competitive labor market are prompting Michigan employers to reconsider how they offer benefits to their employees, according to the 2025 Health, Welfare, and Retirement Plans Survey released by ASE. The survey collected responses from 225 employers across the state.

Employers are increasingly offering multiple health plan options, with 64% providing two or three choices. Larger organizations tend to be more generous; among those with 500 or more employees, 62% offer at least three plans. Preferred Provider Organizations (PPOs) remain the most common type of health plan, used by over 80% of surveyed companies.

However, there is a trend toward greater cost-sharing between employers and employees. For Consumer Driven Health Plans (CDHPs), the median annual deductible is $2,500 compared to $1,000 for traditional plans. Self-funding is also on the rise: while 39% of all companies self-fund their health plans, this approach is adopted by 70% of large organizations.

Looking forward, employers expect health plan costs to increase by another 8% in 2026 after seeing a 6% rise in 2025.

Retirement benefits continue to play an important role in employee retention strategies. Nearly all respondents (96%) provide either a 401(k) or a 403(b) retirement plan. Of these organizations:

- 27% allow immediate participation.

- 43% use automatic enrollment.

- 38% provide immediate vesting for employer contributions.

These features are designed to make saving for retirement easier and more attractive for employees.

ASE President & CEO Mary E. Corrado commented on how employers are adapting: “Many continue to share costs with employees through deductibles and payroll contributions, but we’re also seeing strong movement toward structural solutions like telemedicine, Consumer-Driven Health Plans, wellness programs, and optimized prescription formularies.”

The survey indicates that telemedicine offerings have become widespread—59% of organizations now include it as part of their benefits package. Additionally, CDHPs have been implemented by 28%, and nearly one-third of companies are increasing efforts to educate employees about health plan features and associated costs.

These changes reflect an ongoing effort among Michigan employers not only to manage expenses but also to ensure benefit packages remain appealing amid evolving workforce expectations.