Health Inflation Pushes Employers to Pass on Costs to Workers

Employer-sponsored health plans in 2024 may resort again to passing costs on to their workers as medical inflation heats up, aided by demand for weight-loss drugs such as Wegovy, employee benefit advisers say.

Medical plan costs are forecast to rise 7% to 7.5%, and costs for outpatient prescription drugs are expected to go up 10%, according to the Segal Group Inc., a benefits consulting company.

The focus on rising costs comes as open enrollment starts in October for many employers. Employers in recent years have tried to avoid passing on cost increases to their workers to keep health costs more ...