Employers are under increasing pressure to manage rising healthcare costs without compromising the value of their benefits plans. The newly released CBIZ 2025 State of Healthcare Report offers a data-driven look at the cost trends, clinical developments, and evolving pharmacy landscape shaping employer-sponsored healthcare.
Balancing Talent Goals with Rising Costs
Attracting and retaining top talent has become more challenging in today’s competitive labor market. A strong benefits package can give you a critical edge, but delivering that value is more difficult than ever. Healthcare costs continue to rise, with national projections estimating a 9% increase in 2025. That could push the average per-employee costs to $16,000. CBIZ’s own data supports this trend, showing the cost-per-visit for inpatient and outpatient care rising 8% to 9% year-over-year. Pharmacy spending is climbing even faster, largely fueled by brand-name medications like GLP-1s.
While the market has evolved efforts to guard against paying for non-label use, the data is showing exponential growth year-over-year. Originally developed to treat diabetes, these drugs are now widely prescribed for other conditions such as obesity, sleep apnea, cardiovascular, and neurological conditions. Their growing popularity is reshaping pharmacy spending and forcing employers to reconsider long-term health strategies and plan design.
GLP-1 Utilization is Reshaping Pharmacy Spend
Few medications have disrupted pharmacy benefits like GLP-1s. Drugs like Ozempic, Wegovy, and Mounjaro, are now in high demand for weight management, and that demand is transforming plan costs. While the per-member, per-month (PMPM) drug cost has remained steady, overall pharmacy spending has surged as member usage has increased. GLP-1s have nearly doubled their share of total pharmacy spend, jumping from 9% in 2022 to 17% in 2024 across our client base.
This rapid growth raises serious questions for employers: How long can this level of utilization be sustained? What role should these medications play in a cost-effective, clinically sound benefit strategy?
Employers are wrestling with how to support member wellbeing while managing the long-term financial impact of GLP-1s. The key is building a sustainable benefit strategy informed by data and adaptable to rapid change.
What Employers Should Consider
With GLP-1s becoming more mainstream, employers need to rethink their benefit strategies. Consider these key questions:
- Are current coverage policies in line with clinical best practices and cost-effectiveness? As more employees use GLP-1s, ensure your policies support clinical guidelines and the financial sustainability of your benefits package.
- Should weight management strategies go beyond pharmacy benefits? Addressing weight loss only through pharmacy solutions may not be enough. Consider behavioral and lifestyle support to improve long-term health outcomes and reduce overall healthcare costs.
- How can data be leveraged to evaluate plan performance and anticipate future trends? Assessing and adjusting your benefits based on emerging data will help you stay ahead of shifting trends in medication usage and adapt to evolving employee needs. If an employer covers weight-loss medications, analyzing cost-per-script data can help determine whether partnering with an external vendor offers a more cost-effective delivery strategy.
Stay Proactive, Not Reactive
The impact of GLP-1s is just one of many insights covered in the CBIZ 2025 State of Healthcare Report. The report provides a data-driven look at where employer-sponsored healthcare is heading and how organizations can prepare for what’s next.
Download the full report to explore the trends shaping cost, utilization, and plan design: Access the Report
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