URGENT UPDATE: New reports confirm that companies are cutting gym benefits by an alarming 20% as they tighten budgets amid rising healthcare costs. This shift means many employees may see their access to wellness programs significantly reduced, just as the financial burden of health insurance premiums continues to climb.
As of 2025, data from Ramp Capital shows the average spending on wellness benefits per employee has plummeted to $1,103 from $1,366 in 2023. This drastic reduction highlights the growing trend of corporations reassessing their wellness investments, focusing only on cost-effective options while still aiming to support employee health during uncertain economic times.
Corporate wellness programs, once hailed as essential for employee attraction and retention, are now under scrutiny. The pandemic had previously prompted companies to expand these offerings, but as costs soar—annual family premiums for employer insurance now nearing $30,000—the landscape is shifting. A recent MetLife survey reveals that controlling healthcare expenses is now employers’ top priority, surpassing even employee productivity and loyalty.
Companies are not entirely abandoning wellness initiatives but are instead pivoting towards more budget-friendly solutions. For instance, gym memberships at high-end facilities like Equinox may be replaced with more affordable options like Planet Fitness. “What they’re doing in light of really large increases is they are going through every benefit,” says Todd Katz, head of US group benefits at MetLife.
The mounting evidence shows that a significant portion of wellness resources remains underutilized. A 2023 Deloitte survey found that 68% of employees do not fully leverage their company’s well-being resources, often citing issues like complexity and time consumption. This trend of disengagement is prompting companies to adopt more strategic approaches, focusing on benefits that employees actually want and use.
Cesar Carvalho, CEO of Wellhub, confirms the shift towards cost-effective wellness options. His company offers access to a network of gyms at a minimal cost of $2-$5 per employee monthly, reflecting the growing demand for affordable fitness solutions.
Despite these changes, the effectiveness of wellness programs remains debatable. A 2024 study from Oxford University found that many employer-sponsored offerings, including wellness apps and relaxation classes, had little impact on employee well-being. The exception was volunteering opportunities, which showed positive results.
As companies cut back on these optional benefits, employees are increasingly turning to budget-friendly alternatives, such as ClassPass and lower-cost gyms. Ara Kharazian, an economist at Ramp, notes, “Benefits are being cut, and then as those benefits are being cut, people are spending at cheaper places on average.”
The looming question is how companies will balance their wellness investments with the pressing need to control costs. Josh Bersin, a global industry analyst, emphasizes that while wellness programs were once seen as a pathway to better employee health, the reality is that many are not yielding measurable returns.
For employees, the changes carry emotional weight. Those who rely on these benefits may find their access to wellness programs abruptly limited, raising concerns over their overall health and work-life balance. As businesses seek to navigate these financial pressures, employees might feel caught in the middle, wanting comprehensive health support while facing reduced offerings.
As this situation develops, workers should stay informed about their company’s wellness benefits and advocate for programs that genuinely support their well-being. The shift in corporate priorities could redefine workplace wellness, with significant implications for employee health and morale in the coming months.
Keep an eye on this evolving story as more companies make decisions that impact employee wellness benefits in the face of rising healthcare costs.
