New Data: Benefits Costs are “Unsustainable,” But Some Employers Are Saving $3 Million Annually with AI and Decision Support

March 11, 2025 at 09:09 AM EDT

Denver, Colorado, March 11, 2025 (GLOBE NEWSWIRE) -- Businessolver®, a market leader in SaaS-based HR and benefits administration technology, released its seventh annual Benefits Insights Report which features employee benefits preferences, behavioral insights, and trends data alongside AI technology adoption and effectiveness. The data is based on the 18 million individuals represented on Businessolver’s platform, 740,000 annual enrollment surveys, 42,800 benefits preferences surveys, and feedback from nearly 1,400 HR decision makers.

Employers are under pressure to balance their benefits spend amid record-high healthcare costs and growing employee demand for ever-expansive benefits. For many employers, this is an unsustainable trajectory that is further exacerbated by widespread financial insecurity and persistent benefits confusion:

48% of employees would feel panicked by a $6,000 emergency room bill, spiking to 63% for Gen Z employees. And 20% of Millennials say they would go into debt to pay for an unexpected medical expense.
86% of employees say they are confused about their benefits, a statistic that has remained largely unchanged for seven years running.
79% of employees said they are “confident” or “extremely confident” in their enrollment decisions with 84% rating their enrollment experience as “great” or “excellent,” despite confusion.

Other key findings from Businessolver’s 2025 Benefits Insights Report include:

The effectiveness of best-match decision support at enrollment is increasing: Since 2022, Businessolver has seen a 33% increase in employer adoption of decision support technology which drove an 86% increase in employees who elected more cost-effective plans over the past 4 years.

Employees are 129% more likely to elect a high-deductible health plan (HDHP) and a health savings account (HSA) when decision support is available at enrollment. They are likewise three times more likely to enroll in voluntary benefits when aided by decision support.

Employees readily engage with AI and advanced technology when it makes benefits easier to understand and use: When given access to AI and advanced benefits technology tools, employees overwhelming engage—resulting in fast, complete inquiry resolution and substantial time savings.

69% of employees use decision support to enroll in right-fit-benefits for them at enrollment when it’s available.
64% of employees chat with Sofia^SM, Businessolver’s virtual benefits assistant, with a 90% same-day resolution rate and 84% seven-day ongoing resolution rate.
89% of employees opt into using their claims data for a more personalized benefits experience; 45% likewise opt into text reminders about their benefits.

AI and advanced technology are driving significant savings, efficiency, and satisfaction: AI-enabled automation, decision support, and hyper-personalized employee communications are optimizing costs while ensuring employees receive superior and empathetic support.

90% of all employee chats are resolved instantly with 84% staying resolved after 7 days
Nearly 10 million minutes saved in call and chat times
Up to an average of $3 million saved annually per employer with AI self-service and automation tools such as dependent verification and cognitive search
Right-fit steerage can additionally help an organization of 11,000 eligible employees avoid $3,000,000 in premium spend when employees enroll in cost-effective, best-fit benefits

Benefits preferences are shifting, and it’s not one-size-fits-all: Nearly 43,000 employee survey responses, gathered within the Benefitsolver platform, show diverging benefits preferences among generations.

Boomers have twice as many “Performance” benefits, such as 401(k) and prescription assistance, versus Gen Z. While Gen Z has six times the number of “Delighter” benefits, such as employee assistance programs (EAPs)—demonstrating the absolute dichotomy in their benefits needs and expectations.

Beyond these findings, Businessolver's report also highlights future-forward key performance indicators (KPIs), such as service outcomes driven by its 2024 Benefits Insights Dashboard release, and real-time data analytics that benefits administrators should have on their radars.

“This year’s data demonstrates the real outcomes advanced technology is driving and the key performance indicators that HR should be considering to balance risings costs with employee wellbeing,” said Dr. Kimberly Dunwoody, VP of UX and Member Experience at Businessolver. “It’s clear, achieving value requires both a willingness to disrupt the status quo and a more dimensional, data-driven approach to benefits management. With the right tools and technology, today’s employers can scale personalization and efficiencies across their organizations with ease—and see real ROI within that same year.”

About Businessolver

Since 1998, Businessolver has delivered market-changing benefits technology that empowers empathetic service supported by an intrinsic responsiveness to client needs. The company creates client programs that maximize benefits program investment, minimize risk exposure, and engage employees with easy-to-use solutions and communication tools to assist them in making wise and cost-efficient benefits selections. Founded by HR professionals, Businessolver’s unwavering service-oriented culture and secure SaaS platform provide measurable success in its mission to provide complete client delight.

Attachments

Laura Mantzoros
Businessolver
5175129544
lmantzoros@businessolver.com

Nicole Selinger
(For Businessolver)
314-805-2165
Nicole@KMPRCollective.com

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New Data: Benefits Costs are “Unsustainable,” But Some Employers Are Saving $3 Million Annually with AI and Decision Support

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