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Large employers forecast 7.8% hike in health costs next year, thanks to rising pharmacy spend

Large employers are bracing themselves for a 7.8% increase in healthcare costs next year — the highest projection in more than 15 years — mostly driven by higher spending on pharmaceuticals like coveted and expensive GLP-1s, according to the Business Group on Health’s annual survey of its members.

BGH this summer surveyed large employers that together cover 17.1 million people in the U.S. — roughly one-tenth of the more than 160 million Americans that receive insurance through their job. The survey results are the latest finding employers are gearing up for a major jump in healthcare costs next year, though specific figures vary from around 8% to 9%.