The soaring demand for GLP-1 weight-loss drugs like Wegovy and Ozempic is prompting employers to consider trimming health benefits as costs dramatically increase.
As health care costs are projected to rise nearly 8% in 2025, employers face a difficult decision: absorb increased expenses or cut benefits to mitigate financial strain.
Employers are already experiencing a surge in health costs, with forecasts indicating a 9% increase in employer health costs next year, largely attributed to expensive drugs and specialty therapies.
The rise in spending on drugs, which grew from 21% to 27% of health care expenses over two years, showcases the financial pressure on workplace insurance.
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