benefitfocus revenue impact in 2025?

In 2025, the narrative shifted significantly. First, it's worth noting that in the second quarter of 2025, Voya renamed the "Health Solutions" segment back to Employee Benefits to better reflect its mix of services.

Here is how Benefitfocus and the broader segment performed in 2025:

1. Revenue: Continued Strong Growth

Benefitfocus continued to do its job as a revenue growth engine. Driven by the steady stream of fee-based revenues from the Benefitfocus platform, the Employee Benefits segment saw its net revenues increase by 14.7% for the full year 2025 compared to 2024.

2. Margin: Significant Rebound and Expansion

While Benefitfocus was the primary scapegoat for margin compression in 2023 and 2024, the segment's overall margin expanded substantially in 2025—jumping from 4.1% in 2024 to 13.6% for the full year 2025.

However, this margin expansion was not because the Benefitfocus software suddenly became highly profitable. Instead, it was driven by a massive turnaround in Voya's traditional insurance business.

In 2024, the structural margin drag of Benefitfocus was compounded by heavy losses in Voya's Stop Loss insurance products. Going into 2025, Voya aggressively raised rates on those Stop Loss policies (by an average of 21%) and tightened their underwriting standards.

The 2025 Takeaway: By fixing the core insurance underwriting issues, Voya was able to absorb the lower-margin profile of Benefitfocus. In 2025, Benefitfocus continued to drive strong top-line revenue growth, while the recovery of the Stop Loss and Group Life insurance products allowed the Employee Benefits segment to successfully expand its overall operating margins.