The Weight of Affordability: GLP-1 Drugs’ Hidden Cost to Employers and Employees

The latest report from Milliman highlights a disturbing trend in employer healthcare costs: the skyrocketing expense of prescription drugs, particularly GLP-1 weight loss medications like Ozempic, Zepbound, and Wegovy. These medications have been touted as game-changers for weight management, but their rising cost is having a profound impact on employee out-of-pocket expenses.

The 2026 Milliman Medical Index report paints a dire picture of the financial burden shouldering families and employers alike. The average family of four can expect to pay upwards of $35,000 annually for health insurance, with employees contributing 58% of that total – around $20,000 per year. Prescription drug costs alone account for 13% of total family spending, increasing by a staggering 14.8% year-over-year.

The growing reliance on GLP-1 medications is particularly concerning, as their cost will only continue to escalate, placing an unsustainable burden on both employers and employees. Companies are reevaluating their coverage of these medications, with some opting to limit or eliminate coverage altogether. This trend is especially worrying when considered in conjunction with the stabilization of employer healthcare costs – a phenomenon noted by the Business Group on Health.

As companies require employees to participate in weight management programs or receive prescriptions from specific providers, the complexity and expense of these arrangements will only increase. The decision to cover GLP-1 medications for weight loss is no longer a simple one; it’s a calculus that weighs the benefits of employee health against the financial strain on employers.

The Pharmaceutical Strategies Group has highlighted the difficulty in managing specialty drug costs, including those of GLP-1 medications. Over 40% of health plans rank management of these costs as their top priority, ahead of even controlling total cost of care. Employers are caught between providing adequate coverage for employees and mitigating the financial impact on their own bottom line.

Employers will eventually be forced to turn to their employees to foot a larger share of the bill as prices skyrocket. The consequences will be far-reaching, affecting not only employee well-being but also employer-employee relations and the overall healthcare system.

The affordability of prescription medications is influenced by insurance coverage, manufacturer pricing strategies, and regulatory frameworks. Policymakers must consider the broader context: how will these costs be distributed among employees, and what impact will this have on workforce productivity, employee satisfaction, and overall public health?

In the face of mounting expenses, it’s time for a reevaluation of the current healthcare system. Employers must carefully weigh the benefits of GLP-1 medications against their financial implications, while policymakers explore innovative solutions to address the rising costs associated with prescription medications.

The affordability of life-saving treatments is not just an economic concern; it’s a matter of basic human dignity. As employers and policymakers navigate this complex landscape, they would do well to remember that the true cost of healthcare lies not only in dollars and cents but also in the very lives affected by these decisions.