Maximizing your company's benefit designs with the most up-to-date options

By Trey Hinson

There is a high probability if you are in a company of 200-plus employees, your benefit advisor is going to present the 2025 healthcare renewals. For smaller businesses, your time is coming. Don't worry, as they will see you in the fourth quarter.

In preparation for this visit, I wanted to discuss a major healthcare cost driver many employers are facing, GLP-1s. In the last article, we dove into the macro concepts of healthcare plan options and who/why you may want to consider each one.

Here, we are going to shift to a more pinpoint issue affecting many U.S. businesses today.

After attending some of the country’s highest profile conferences over the last year, each one contained a session on GLP-1s and the impact they are having on the physical and fiscal health of the employer community. As many employers face rising costs of goods sold and insurance rates are expected to collectively increase 7%-9% for 2024-2025, plan decisions will have a significant impact on your bottom line.

While we all wait to see if the expected increase comes to fruition, understanding one of the main drivers will be imperative for you to discuss in the upcoming year.

After attending some of the country’s highest profile conferences over the last year, each one contained a session on GLP-1s and the impact they are having on the physical and fiscal health of the employer community.

GLP-1 Drug Programs 

Chances are you know someone who is currently on GLP-1 drugs. Because it is everywhere today, the expansion of value continues. There is little doubt the costs associated with this will be very impactful for employers of all sizes and geographies. From national publications to the nightly news, GLP-1s are all the rage.

Many of the national carriers have decided to exclude GLP-1s for weight loss, which is a driving force to the rate increases that many of you will see in your annual renewals. According to a recent *Forbes.com article, "GLP-1 Agonist: Silver Bullet Or Arrow in the Anti-Obesity Quiver," 70% of the US population is overweight and obese, and conditions related to obesity account for 20% of all healthcare costs —$170B annually.

You will need to be prepared to address this with your broker and your employees. Some 42% of employers with more than 500 employees currently are covering these drugs, according to a **Mercer Study.

It is imperative you determine your company’s stance on this issue for the upcoming renewal year and relay this to your broker. If you are fully insured, you will find that the Carrier often controls this decision, but if you are self-funded you will find that you have a number of options from your Pharmacy Benefit Managers programs to your benefit design that can customize the inclusion or exclusion, as you desire through a custom formulary.

Wishing you the best of luck in your upcoming renewal, and please do not hesitate to reach out to me if I can ever help.