GLP-1s: What Benefits Leaders Need to Know for 2027
If your 2027 medical renewal came in higher than expected, GLP-1s may be one of the reasons.
The numbers
Before any cost cutting, Aon projects US employer healthcare costs will rise 9.5% in 2027, to more than $19,000 per employee, which would be the fourth straight year of near double digit increases.¹ Mercer projects an 8.2% increase even after employers' planned cost cutting, the largest since 2003, and its actuaries estimate that rising GLP-1 use accounts for a full percentage point of that growth.² Pharmacy costs are growing fastest: Milliman found they rose 14.8% this year, mainly because of GLP-1 use and high-cost specialty drugs.³
Why GLP-1 costs are hard to contain
More people qualify for GLP-1s each year. They are now used for cardiovascular disease, sleep apnea, and chronic kidney disease, and new oral versions are making them available to more patients.¹
How employers are responding
Mercer found 6% of large employers dropped GLP-1 coverage for weight loss in 2026, and another 5% plan to drop it in 2027 or are considering it. A larger share, 27%, tightened utilization controls this year or plan to in 2027. Employees will also pay more: 48% of large employers expect 2027 plan changes, such as higher deductibles or copays, that raise out-of-pocket costs.⁴
The case for keeping coverage
Aon analyzed claims from more than 50 million people, including 192,000 GLP-1 users. Among people using GLP-1s for diabetes, medical cost growth at 30 months was six percentage points lower than for non-users. For those who took the drugs consistently (at least 80% adherence), it was nine points lower.⁵ The savings depend on employees staying on the medication, and they take time to show up.
Prices are changing
Novo Nordisk announced list price cuts of 35% to 50% on Wegovy, Rybelsus, and Ozempic.⁶ Manufacturers also sell these drugs directly to consumers, and employers have noticed they sometimes pay more than the direct-to-consumer price.⁷ If that's true in your plan, raise it in your renewal negotiation.
The bottom line
GLP-1s are one of the biggest variables in your 2027 renewal. The employers that manage this well won't necessarily be the ones that cut coverage. They'll be the ones that know their own data, push for better pricing, and choose a strategy that fits their workforce.
Sources
¹ Aon, "U.S. Employer Health Care Costs Continue Multi-Year Climb, Projected to Rise 9.5% in 2027" (Aug. 20, 2026): aon.mediaroom.com/2026-08-20-Aon-U-S-Employer-Health-Care-Costs-Continue-Multi-Year-Climb,-Projected-to-Rise-9-5-in-2027
² Mercer, "Survey: Health benefit costs expected to jump 8.2% in 2027, the biggest increase since 2003": mercer.com/en-us/insights/us-health-news/survey-health-benefit-costs-expected-to-jump-in-2027/
³ Milliman, "2026 Milliman Medical Index": milliman.com/en/insight/2026-milliman-medical-index
⁴ Mercer, "Employers are shifting health care costs to employees but also leveraging new approaches to minimize impact" (June 11, 2026): mercer.com/en-us/about/newsroom/employers-are-shifting-healthcare-costs-to-employees/
⁵ Aon, "Aon's Latest GLP-1 Research Reveals Long-Term Employer Cost Savings and Significant Reductions in Cancer Risk for Women" (Jan. 13, 2026): aon.mediaroom.com/2026-01-13-Aons-Latest-GLP-1-Research-Reveals-Long-Term-Employer-Cost-Savings-and-Significant-Reductions-in-Cancer-Risk-for-Women
⁶ WorldatWork, "Is GLP-1 Cost Help on the Way for Employers?": worldatwork.org/publications/workspan-daily/is-glp-1-cost-help-on-the-way-for-employers
⁷ Peterson-KFF Health System Tracker, "Perspectives from employers on the costs and issues associated with covering GLP-1 agonists for weight loss": healthsystemtracker.org/brief/perspectives-from-employers-on-the-costs-and-issues-associated-with-covering-glp-1-agonists-for-weight-loss/