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Rising Health-Care Costs and Prescription Drug Prices Pose Challenges for Employers

Health-care inflation is on the rise, with costs for medical care soaring and contributing to potential double-digit premium increases for consumers in 2026. Large employers are projecting a 9% increase in health coverage costs, the highest level of inflation since 2010, due in large part to a 12% hike in pharmaceutical costs next year. Expensive drugs, particularly cancer treatments and weight loss medications like Novo Nordisk’s Wegovy and Ely Lilly’s Zepbound, are driving these increases.