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A recent Business Group on Health (BGH) survey revealed that the increasing interest and spending on glucagon-like peptide-1 (GLP-1) drugs are driving up healthcare costs in 2025.
Employers are feeling the pressure on their budgets as the average monthly cost of GLP-1 treatment is $1,000 per individual. Originally used for diabetes, these drugs are now popular for weight loss, leading employers to worry about the long-term commitment required for effective use.
Large employers covering 17.1 million Americans in BGH’s survey predicted a 7.8% increase in 2025 healthcare costs, driven mainly by pharmacy expenses. More than half (57%) said GLP-1 spending was a significant cost driver, with concerns also on cell and gene therapies. Employers plan to absorb costs themselves, not passing them onto employees.
The popularity of weight loss drugs like Ozempic and Wegovy has surged in the United States. The trend has spilled over into the workplace with employees seeking coverage from employers. Employers are hesitant due to the cost and long-term commitment of GLP-1 drugs despite the demand.
Employers should continue to monitor benefits trends, employee utilization, and spending. Download the bulletin for more details.