A recent Business Group on Health (BGH) survey found that heightened interest and spending on glucagon-like peptide-1(GLP-1) drugs is a major driver of rising health care costs in 2025.
Americans’ interest in GLP-1 drugs is increasingly pressuring employers’ budgets. On average, GLP-1 treatment costs around$1,000 per individual each month. The medications were traditionally used to treat diabetes but are now in demand for weight loss. When considering covering weight loss drugs, many employers are concerned that they must be used for extended periods to be effective, requiring a long-term commitment.
Large employers that collectively cover 17.1 million Americans participated in BGH’s annual health care strategy survey. These employers predicted that their health care costs would rise about 7.8% in 2025 before plan design changes, mostly due to pharmacy costs. More than half (57%) of the respondents said that GLP-1 spending was “driving health care costs to a great or very great extent.” Other concerns focus on costly cell and gene therapies and overall pharmacy costs. Participating employers in the BGH survey said they won’t reduce benefits and plan to absorb most of the costs themselves instead of passing them onto their employees.
Employer Takeaway
The popularity of weight loss drugs, such as Ozempic and Wegovy, has soared in the United States. This trend has even made its way into the workplace as employees ask their employers to cover weight loss drugs. Given the cost of GLP-1 drugs and their long-term commitment, employers may still be on the fence about whether they should cover the drugs despite demand.
For more Employee Benefits resources, contact INSURICA today.
Copyright © 2024 Smarts Publishing. This is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.
About the Author
Share This Story
Related Blogs
Preparing for Freezes: Protecting Your School During Cold Weather
Preventing Frozen Pipes in Schools is essential to maintaining a safe and operational learning environment during cold weather. Frozen and burst pipes can cause costly damage, disrupt daily activities, and compromise the safety of students and staff. By taking proactive steps, schools can effectively mitigate these risks and ensure their facilities are prepared for freezing temperatures.
Cyber Case Study: Hack at Steel Mill Causes Physical Damage
In late 2014, the German Federal Office for Information Security (BSI) released a report detailing a disruptive cyber attack at an unnamed steel mill facility. The attack—which was deployed through a combination of social engineering tactics and malware— compromised several of the steel mill’s industrial control components. From there, equipment breakdowns and production outages ensued, resulting in extensive property destruction.
Winter Driving Tips for Truckers
One of the joys of the trucking business is the ability to travel across the country and experience the beauty of different roads from coast to coast. However, this also means you must prepare for various types of driving conditions.