Soaring healthcare costs driven by GLP-1s and mental health needs

The 2025 healthcare landscape is being shaped by a combination of rising costs, evolving employee expectations, technological innovation, and breakthrough medical treatments, according to recent research gathered from nearly 300,000 health plan users.  

According to CBIZ's annual State of Healthcare report, one of the most significant cost drivers this year is the increasing popularity of GLP-1 weight loss drugs, such as semaglutide injections like Ozempic and Wegovy. While these medications were originally developed to treat type 2 diabetes, they've since gained rapid adoption for their effectiveness in promoting weight loss and reducing other chronic conditions, including cardiovascular risks. 

Read more: Will you offer GLP-1s to your workers in 2025?

However, their high monthly costs — ranging from $1,000 to $1,500 — are placing considerable financial pressure on employer-sponsored healthcare plans. According to a 2024 survey by the Business Group on Health, 56% of large employers reported that GLP-1 drugs were having a major impact on healthcare costs, and 67% were covering them for obesity treatment. 

"There's no debating that GLP-1 medications have a ton of great proven outcomes for people with diabetes and people with obesity," Kristin Hall, VP of clinical programs and patient experience at Apree Health, a healthcare navigation company, previously shared with EBN. "But the unit price of these drugs is substantially high in the United States. It's essential for employers to focus on behavior change alongside medication so employees can reach their goals."

Healthcare costs on the rise

These expenses are aligned with overall healthcare cost increases — CBIZ's report predicts a 5.8% increase in 2025, marking the third consecutive year of above-5% growth. Analysis from Mercer points to this uptick being driven by broader inflation in medical services, higher utilization rates, and the rising cost of new therapies like GLP-1s. To manage these increases, employers are deploying a range of strategies, including higher employee premiums and deductibles, as well as self-insured funding models. 

Still, employers are invested in supporting employee health and well-being, especially when it comes to mental health. According to CBIZ, many organizations are enhancing their benefits to include expanded access to therapy, telehealth services and resilience programs. This shift reflects an understanding that comprehensive wellness solutions support both employee retention and productivity. 

Read more: Working from bed? Remote workers still face productivity challenges

A move toward personalization is also evident, as employers tailor benefits to meet the needs of a multigenerational workforce. Flexible, "choose-your-own" benefits packages are becoming the norm, addressing distinct life-stage needs such as student loan repayment for younger workers and eldercare support or retirement planning for older staff. 

"In an era where workplaces host a blend of generations, the dynamics of employee needs and expectations have evolved significantly," Abhishek Shah, founder and CEO of Testlify, previously shared with EBN. "HR and benefits leaders face the challenge of tailoring benefits programs that resonate with the diverse perspectives, experiences and preferences of the four generations coexisting in today's workforce." 

Tech and healthcare merge

Technology is another force reshaping employee benefits. Employers are rapidly adopting AI-driven platforms to streamline benefits administration and enhance employee experience, while digital health tools like mobile apps and virtual care options are making care more accessible. 

Read more: How AI is simplifying healthcare claims

Finally, regulatory changes are compelling employers to embrace greater transparency and accountability in their benefits communications. New compliance standards are reinforcing the need for clear, accessible information about plan design and cost, which in turn helps foster trust and improve benefits engagement. 

Today, benefit managers are operating amid a healthcare environment in flux — where innovation, cost management, employee well-being, and strategic adaptability are redefining how benefits are structured and delivered in 2025.