Prescription Drugs Driving Employer Health-Care Cost Increases

Large employers that sponsor health plans expect a 6% increase in costs this year, largely from prescription drugs, according to a survey of companies covering 19 million Americans released Tuesday.

Pharmacy costs accounted for 24% of health-care spending in 2022, up from 21% in 2021, Ellen Kelsay, president and CEO of the Business Group on Health, said in a press call to announce the group’s findings. “Clearly we’re heading in the wrong direction,” she said.

The group’s annual survey highlights increasing employer concerns about costly drugs, including new weight-loss drugs. The higher prices impact how much employers and employees ...