Rising healthcare costs and the ongoing competition for talent have put Michigan employers in a delicate position: how to offer benefits that attract and retain employees without breaking budgets. ASE’s newly released 2025 Health, Welfare, and Retirement Plans Survey shows how organizations across the state are striking that balance.
The survey, which gathered input from 225 Michigan employers, reveals a picture of employers carefully adapting their benefit strategies. While most continue to share costs with employees through deductibles and contributions, they are also leaning on new tools and structures to keep benefits attractive.
Health Plans: More Choices, Higher Deductibles
For many employees, the first thing they notice about benefits is the health plan options. The majority of employers (64%) now offer two or three plan choices, giving employees some flexibility without overwhelming them. Larger employers are especially generous with options – 62% of those with 500 or more employees provide three or more plans.
PPOs remain the most popular plan type, used by more than 8 in 10 organizations. But there’s a growing emphasis on cost-sharing. Deductibles tell the story: the median annual deductible for Consumer Driven Health Plans (CDHPs) is $2,500, compared to $1,000 for traditional plans.
Self-funding also continues to expand. While 39% of all companies self-fund their health plans, the majority of large organizations (70%) now do so.
Looking ahead, employers anticipate health plan costs will rise another 8% in 2026, a jump from the 6% increase they saw in 2025.
Retirement Benefits: A Key Retention Tool
While healthcare takes the spotlight, retirement benefits remain a cornerstone of competitive compensation. Nearly every employer surveyed (96%) offers a 401(k) or 403(b).
Many are making these plans more employee-friendly:
- 27% allow immediate participation.
- 43% use auto-enrollment, most often into target-date or lifestyle funds.
- 38% provide immediate vesting for employer contributions.
These features demonstrate a clear recognition: employees want security for their future, and organizations that make it easier to save are more attractive.
What Employers Are Doing Differently
According to ASE President & CEO Mary E. Corrado, employers are finding ways to adapt without pulling back on benefits. “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,” she explained.
The survey shows that 59% of organizations now offer telemedicine, 28% have implemented CDHPs, and nearly one-third are ramping up employee education on health plan features and costs.
These shifts reflect a broader trend: employers aren’t just reacting to costs, they’re rethinking benefits to be both financially sustainable and appealing to employees.
Why This Matters
For HR and business leaders, these insights provide valuable benchmarks. They highlight the direction Michigan employers are heading and underscore the importance of balancing cost management with benefit competitiveness.
The full 2025 Health, Welfare, and Retirement Plans Survey is available at no cost to participating ASE member organizations in the ASE Survey Library. Non-members may purchase the report or request to join here.
Source: ASE 2025 Health, Welfare, and Retirement Plans Survey