Core Insights - Health-care inflation is leading to significant increases in health-care spending by large employers, potentially marking the largest rise in 15 years [1][3] - Medical care costs rose 4.2% annually in August, with specific increases in doctors' visits (3.5%) and hospital services (5.3%) [1] - Large employers anticipate an average 9% increase in health coverage costs for 2026, the highest since 2010 [3] Health Insurance Costs - Consumers not qualifying for government subsidies may face double-digit premium increases in 2026 [2] - Workers with employer health coverage are also expected to see higher premiums and out-of-pocket costs [2] Pharmaceutical Costs - Prescription drug prices increased by 0.9% in August, but large employers project a 12% rise in pharmaceutical costs for next year, following an 11% increase this year [5][6] - Cancer treatments and obesity drugs, particularly GLP-1s, are major contributors to rising health spending [6] Employer Strategies - More than half of surveyed companies are considering passing some cost increases to employees, although many are seeking alternative cost-cutting measures [3][4] - Employers are tightening eligibility for expensive drugs and exploring cash-pay options to manage costs [8][11] Access to Weight Loss Drugs - Nearly two-thirds of large employers offer access to GLP-1 weight loss drugs, while less than half of small employers plan to do so in 2026 [7] - Direct-to-consumer options for GLP-1s are becoming popular, with significant growth in cash-pay spending [10][11] Challenges for Employers - Employers are concerned that cash-pay trends may exclude lower-income workers who cannot afford out-of-pocket costs [11] - There is a push for better options from pharmacy benefit managers (PBMs) to negotiate drug prices more effectively [13] Future Considerations - The situation with GLP-1s is seen as a critical moment for employers and PBMs, potentially setting a precedent for managing costs of other high-impact drugs [14]