What's Happening?
A survey by the Business Group on Health reveals that employers are preparing for a 9% increase in healthcare costs in 2026. This follows two years of cost increases that exceeded expectations. Key factors contributing to this trend include rising demand for weight loss medications like GLP-1s and increased mental health service utilization. Employers are exploring alternative health plan models and transparent pharmacy benefit managers to manage costs effectively. Cancer remains the leading driver of healthcare expenses, prompting a focus on prevention and screening.
AD
Why It's Important?
The anticipated cost increase poses significant challenges for employers, potentially affecting the benefits offered to employees. As healthcare costs continue to rise, employers may need to reassess their strategies to maintain affordable and high-quality care. The focus on alternative health plans and transparent PBMs reflects a broader industry shift towards value-based care. The emphasis on mental health services highlights growing recognition of mental health as a critical component of employee well-being and healthcare costs.
What's Next?
Employers may implement stricter utilization management protocols for weight loss medications and explore new partnerships with healthcare vendors. The survey suggests potential changes in vendor lineup and program configurations to enhance plan quality and affordability. Employers will continue to monitor cost drivers and adjust their strategies to address evolving healthcare needs and financial pressures.
