Younger generations experience serious health issues earlier in life

Younger generations are going through serious health issues earlier in life, with substantial implications for employer-sponsored health plans. That was the word from UnitedHealthcare and Health Action Council, which published a white paper on their findings.

The report pointed out that costs for employer-sponsored health care benefits are rising more quickly than general inflation and wage growth, affecting employers and their employees. For example, the report said, KFF’s 2025 Employer Health Benefits Survey reports a 6% increase in per-employee benefit costs in 2025, with a projected 6.5% rise in 2026.  These trends reflect the continued affordability pressures facing the American health system.

“Employers are seeing health issues show up earlier and feeling the cost impact sooner,” said Patty Starr, president and CEO of Health Action Council. “This report gives plan sponsors the transparency and insight they need to spot health problems earlier, help people stay on top of basic and preventive care, and help them stay healthier while keeping benefits affordable.”

Main takeaways from the report

One of the main takeaways of the report is that health risks and health care costs are showing up earlier than many employers expect, putting added pressure on employer‑sponsored health plans, said Craig Kurtzweil, chief data analytics officer for UnitedHealthcare Employer & Individual. “Costs for employer‑sponsored health care benefits continue to rise faster than general inflation and wage growth, affecting both employers and their employees,” he added.

That cost pressure is being driven in part by an increase in serious, high‑cost health events, Kurtzweil explained. Conditions such as heart attacks, strokes, complex surgeries and illnesses such as cancer or genetic disorders are becoming more common across the workforce. In fact, Kurtzweil said, “these major health events are now about twice as frequent as they were five years ago, and average monthly claims tied to them have increased nearly 40% since 2020.”

At the same time, the report points to a clear generational shift. Although millennials and Generation Z still have lower overall health care claims than those of older generations, costs for these younger generations are rising at a much faster pace, Kurtzweil added. Between 2023 and 2025, their year‑over‑year growth rate was nearly double that of baby boomers. “The data shows younger adults are developing chronic conditions such as diabetes, obesity and high blood pressure earlier in life and are less likely to engage in regular primary care, which increases the likelihood that health issues become more serious and more costly over time,” he said.

Taken together, Kurtzweil said, these trends suggest that some longstanding assumptions about how age, risk and cost show up in employer health plans are shifting. “For employers, and for the agents and advisors who support them, the report underscores the importance of paying closer attention to emerging risks earlier and across a broader portion of the workforce,” he added.

Using the report’s data

Employers can play an important role by using insights about their workforce to shape benefits and engagement strategies more intentionally, Kurtzweil said.

To start, the data can help employers better understand the specific health risks within their employee population and focus on earlier intervention. “Encouraging preventive care and consistent use of primary care is especially important,” Kurtzweil pointed out. “The report finds that people who regularly see a primary care provider have 27% lower claims for major health events, along with fewer emergency room visits and hospital admissions.”

Beyond primary care, Kurtzweil said, employers can also look at benefit design that makes care easier to understand and easier to access. Plans that offer clearer upfront costs and simpler navigation can help employees make more informed decisions about where to go for care and when.

Finally, Kurtzweil said, the report highlights how evidence‑based programs such as metabolic health support, lifestyle coaching and weight management can help reinforce care outside the doctor’s office when paired with strong primary care engagement. “Using data to identify early warning signs, including gaps in preventive care or early indicators of chronic conditions, can help employers step in sooner, before those issues turn into higher‑cost health events,” he added.

Overall, Kurtzweil said, “the report shows that when employers act on these insights and focus on early engagement, preventive care, and primary care access, they can help support better employee health while helping to manage long‑term health care costs.”

Access the white paper (pdf) for strategies to help improve workforce health engagement and affordability.                                                                  

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Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at [email protected].