**U.S. Employers Preparing for Rising Healthcare Costs**
A recent survey indicates that 60% of U.S. employers are providing reimbursement for GLP-1 medications for obesity treatment in 2026, a decrease from 72% in 2025.
According to the Business Group on Health’s “2027 Employer Medical Strategy Survey” released on August 25, employers anticipate a median increase of 9.2% in healthcare costs for 2027. With adjustments to employee benefit plans and other cost-saving measures, the projected increase could potentially be reduced to around 8%.
For 2026, employers anticipate a median cost increase of 8.5%. After adjusting healthcare plans, the increase could possibly be lowered to 7%.
Employers interviewed mentioned that pharmaceutical expenses account for approximately 25% of total healthcare costs. Due to the rapid growth in the use of GLP-1 medications, pharmaceutical costs are expected to increase by 12% in both 2026 and 2027.
Many employers are taking steps to reduce drug costs, including tightening reimbursement restrictions for GLP-1 weight loss drugs and promoting the use of lower-cost alternative medications.
Ellen Kelsay, President and CEO of the Business Group on Health, stated in the report that factors such as soaring hospital and drug costs, rapid innovation in specialty treatment technologies, and changes in federal health policies make healthcare costs challenging to predict.
“For employers, this is a frustrating new reality,” Kelsay said.
Some employers mentioned that they will encourage patients to use more affordable GLP-1 biosimilars if clinically appropriate.
A Gallup report released in July revealed that currently, 11% of U.S. adults are taking GLP-1 medications for weight loss, a significant increase from 3% in 2024.
The survey also found that while the obesity rate among U.S. adults has decreased from 39.9% in 2022 to 36.4% this year, the percentage of diagnosed diabetes has remained relatively stable since 2023.
Although GLP-1 medications significantly contribute to rising drug reimbursement costs, the survey found that cancer has been the leading illness impacting healthcare expenditure for five consecutive years. This year, over 70% of employers reported that cancer treatment is their largest medical expense, higher than 58% in 2025.
Additionally, 62% of surveyed employers attributed increased reimbursement costs to hospital price hikes, with 48% citing rising outpatient facility expenses.
To combat the escalating healthcare costs, employers plan to seek lower prices through Requests for Proposals (RFP), enhance preventive and primary care, and eliminate underperforming service providers.
The report indicated that actual employee healthcare expenditures have exceeded employer expectations over the past three years. The Business Group on Health predicts that cumulative healthcare cost increases from 2018 to 2027 could reach up to 76%, nearly double the inflation rate during the same period.
To address the upcoming surge in costs, 26% of surveyed employers plan to offer alternative healthcare solutions for employees in 2027, while another 31% are considering doing so in 2028 or 2029.