Nearly eight in 10 employers say GLP-1 drugs are a major contributor to rising healthcare costs, according to a new survey from Business Group on Health.
The survey was conducted between February and March among 105 members of the non-profit organization. Most surveyed employers covered GLP-1s for diabetes, though 67% of respondents reported covering the drug for weight management.
Of respondents covering the use of GLP-1s, 10% said they would likely not continue coverage through 2027 and 72% said they would likely continue coverage. Respondents who do not currently cover the medications are unlikely to do so in the future, according to the organization.
Moreover, 87% of respondents said the new availability of oral GLP-1 medications, like Wegovy and Foundayo, will result in higher demand—with only 9% expecting an accompanying price decrease.
“Our findings show the tremendous concern employers have regarding these medications from a cost and financial viability perspective,” said Ellen Kelsay, Business Group on Health president and CEO, in a statement. “Against the backdrop of anticipated double-digit health care cost increases, fueled to a large degree by GLP-1s and overall prescription drug costs, companies cannot ignore the reality that GLP-1s have significant implications for health care budgets – and overall affordability.”
Increasing GLP-1 use coincides with higher general health benefit costs for employers.
The results echo concerns from healthcare CFOs in a recent Mercer survey. Rising health benefit costs are a “top three” concern for a third of leaders relative to other expenses.
For GLP-1 drugs, 47% of respondents indicated costs over the next three years are “very concerning/significantly concerning.”
Respondents in Mercer’s November National Survey of Employer-Sponsored Health Plans also said they expect to see health benefits rise by 6.7% this year, reaching more than $18,500 per employee on average—up from $17,964 in 2025.