Increased prescription drug spending driven by weight loss medications is one of the leading reasons behind a projected 8% health care cost increase for employers in 2025, according to a new survey.
The Business Group on Health’s 2025 Employer Health Care Strategy Survey found the median percentage of health care dollars spent on pharmacy rose from 21% in 2021 to 27% in 2023.
Seventy-six percent of employers reported being “very concerned” with overall pharmacy costs.
At the same time, 79% of the 125 employers surveyed said they saw a heightened interest in obesity medications, including GLP-1s, among their covered members.
While these medications are a standard treatment for diabetes (covered by 96% of employers in 2024), eligibility has broadened to include obesity (covered by 67% of employers in 2024) and cardiac conditions (covered by 34% of employers in 2024).
“Employers are steadfast in their desire to provide comprehensive offerings to their workforces,” said Ellen Kelsay, president and CEO of Business Group on Health.
“They continue to absorb much of the upticks in cost and remain keenly focused on lowering spending and improving outcomes and experiences for employees. However, the foreboding cost landscape has accelerated the need for bold transformation, and employers seek partners who will make that happen.”
To see the full survey results, click here.
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