Employers are about to spend a lot more on health insurance next year as they shoulder higher costs driven by GLP-1 drugs, cancer, and mental health services, a new survey finds.
In its annual survey released Tuesday, 121 employers who cover 11.6 million people told the Business Group on Health they expect health care costs to spike by a median of 9% next year, a figure that’s in line with other forecasts for employer-based health insurance. The Business Group on Health is a coalition of over 400 companies trying to lower the amounts they spend on employees’ health care.
Companies’ strategies for managing the ballooning costs, several experts said, will likely skew toward more aggressive scrutiny of their health insurance carriers and other third-party vendors that help them manage costs, and finding alternatives, if necessary. The higher costs raise the prospect of higher insurance premiums and deductibles for workers, though Ellen Kelsay, CEO of the Business Group on Health, said companies will try to shield employees as much as they can.
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