What's Happening?
As healthcare costs continue to rise, employers are scaling back on new investments in digital health solutions. According to the Peterson Health Technology Institute's 2025 State of Digital Health Purchasing
survey, only one-third of employers plan to increase spending on digital health in 2025, a significant drop from the previous year. In contrast, health systems and health plans are increasing their digital health investments. Employers are primarily concerned with cost, with two-thirds citing it as the top factor in evaluating digital health providers. Despite the slowdown in spending, there is a strong uptake of digital health solutions among employees, with 44% of eligible workers enrolled.
Why It's Important?
The decision by employers to maintain or reduce digital health spending could have significant implications for employee health benefits and overall workplace wellness. As digital health solutions have become integral to managing work-life balance, especially post-pandemic, a reduction in investment may affect employee satisfaction and productivity. Employers focusing on cost may miss out on the long-term benefits of improved employee health and reduced absenteeism. The trend also highlights a potential shift in the healthcare market, where health systems and plans may take the lead in digital health innovation, potentially influencing future employer strategies.
What's Next?
Looking forward, 65% of employers plan to maintain their current spending levels on digital health in 2026, with only 14% expecting to increase investment. This suggests a cautious approach as employers navigate economic uncertainties. HR departments may need to advocate for the benefits of digital health solutions to secure leadership buy-in. Emphasizing cost savings and convenience could be key strategies in promoting these solutions. As digital health continues to evolve, employers may need to reassess their strategies to remain competitive in attracting and retaining talent.
