Large U.S. employers expect median health care costs to rise 10% in 2026. Small employers can typically expect larger increases. The projected increase is attributed to a variety of factors, with specialty drugs and catastrophic claims the biggest contributors.

The top four factors

  • Specialty drugs
  • Catastrophic claims
  • Utilization due to chronic conditions
  • Medical provider costs

Prescription medications, a primary reason for the cost increase,  like GLP-1 drugs, cancer drugs, and cell and gene therapy are predominantly responsible for the projected increase. Additional factors include the increased use of other high-cost treatments, and an increase of mental health conditions.

 

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