Employers across the United States are preparing for a steep rise in health‑care expenses in 2027. A recent survey by the Business Group on Health reveals that 14% of companies have already eliminated, or intend to eliminate, coverage for GLP‑1 medications used for weight management.
Rising costs drive the shift
The survey projects overall health‑care costs to increase 9.2% next year, with pharmacy expenses alone expected to climb 12%. Prescription drugs already represent roughly one‑quarter of an employer’s total health‑care spend, and GLP‑1 drugs—originally developed for Type 2 diabetes but now widely prescribed for weight loss—are among the most expensive treatments.
Coverage rates falling
In 2025, 72% of employers reported covering weight‑loss drugs. That figure dropped to 60% in 2026, and the latest data suggest the trend will continue as companies reassess which therapies they can afford to include in employee benefit plans.
Employer perspective
Ellen Kelsay, president and CEO of the Business Group on Health, said the growing expense of health care is making budgeting increasingly difficult. “This represents an unfortunate new reality for employers, who now face growing difficulty in budgeting and forecasting,” Kelsay said. She urged employers to consider more disruptive approaches to delivering value and improving health outcomes.
Kelsay emphasized that employers remain committed to sponsoring health coverage, but they need greater accountability from vendors and more involvement from company leadership and employees in discussions about health‑care costs.
Impact on workers
Employees who currently rely on employer‑sponsored plans for GLP‑1 medications may see fewer options during the 2027 open‑enrollment period. Kelsay advised workers to review benefit information carefully and to consider the long‑term health and financial implications of using these drugs for weight management.
Balancing cost and health
While GLP‑1 drugs can produce significant weight loss and help manage certain medical conditions, their high price raises questions about long‑term affordability. Employers must weigh the immediate expense against potential downstream savings from improved health outcomes.
The Business Group on Health’s findings highlight the broader pressure facing employer‑sponsored health plans as they seek to control costs while maintaining competitive benefits for their workforce.
Original reporting: WOWO News/Talk (Fort Wayne) — read the source article.
