Large employers forecast 7.8% hike in health costs next year, thanks to rising pharmacy spend

With a 7.8% projected increase in 2023 healthcare costs, the highest in 15 years, large employers are facing significant pressure. Mainly driven by increased spending on costly GLP-1 pharmaceuticals, rising healthcare costs are also influenced by poor quality providers and fraud. As a result, employers are seeking more transparent benefits models and are looking to reassess their current healthcare providers. Despite forecasts, employers have stated that they will not reduce benefits and will absorb the majority of the costs.