(NewsNation) — A survey from 125 employer members of Business Group of Health has revealed demand for GLP-1s, otherwise known as diabetes and weight loss drugs, could drive up health care costs.
According to the data, an 8% hike of health care costs is expected in 2025; the greatest increase in a decade. For context, 2024 costs were a 7.2 increase on 2023.
What’s more, cumulative growth for adult health care has risen 50% since 2017. Various factors are at play, including inflation, employers unwilling to bestow the cost upon employees and pharmacy costs.
But it is GLP-1 medications such as Ozempic and Wegovy, that are driving health care costs upward, according to the survey of 125 employers, which cover 17.1 million people.
Cancer and musculoskeletal-related treatment were the first and second most costly treatments, though cardiovascular conditions came in at third.
Seventy-nine percent of employers surveyed outlined there was greater interest in GLP-1 medication among its members. So much so, 96% said they were concerned about future implications surrounding costs.
“Companies are always trying to balance a strong benefits offering that meets the needs of their employees with affordability,” Jeff Williams, U.S. President and CEO of benefits administration company, Aptia, told NewsNation.
“In our analysis and data, we see employers who fully understand and are doing their best to meet the needs of their diverse workforce be the most successful in these situations.
“As costs rise, employers are challenged now more than ever to balance their bottom line against the needs of their current and future employees to be competitive. This trend will no doubt continue.”
With obesity medication gaining popularity, 67% of employers surveyed covered this under their respective health care plans, while 96% covered diabetes treatments.
