HEALTHCARE COSTS SET TO RISE 8.4%: WHAT EMPLOYERS NEED TO KNOW NOW

Healthcare costs are projected to rise 8.4% next year, adding about $1,300 in annual expenses per employee. Much of this increase will be driven by specialty drugs such as GLP-1 medications for weight management and diabetes, as well as the growing prevalence of chronic conditions, mental health needs and ongoing labor shortages. Employers can help manage these cost pressures by encouraging the use of lower-cost biosimilars and generics, guiding employees toward more affordable care options, requiring prior authorizations for high-cost medications, monitoring healthcare utilization to prevent unnecessary spending and strengthening vendor relationships to maintain both quality and cost control.