As prescription drug spending surges, it has become a critical focus for self-insured employers and benefits consultants. The 2024 Benefit Consultant Sentiment Index reveals that 61% of consultants are increasingly advising on drug costs. Spending is notably driven by the popularity of GLP-1 medications like Ozempic and Wegovy, initially for diabetes but now also for weight reduction. However, only 31% of consultants recommend expanding coverage, while 47% suggest varied coverage based on client needs. Employers face financial and cultural considerations, with the high costs of GLP-1 drugs and potential long-term benefits in reducing obesity and Type 2 diabetes.
The Index, which surveys over 100 experienced healthcare benefits consultants, also highlights the growing role of artificial intelligence in healthcare. AI is enhancing personalized decision support, reducing administrative burdens, and optimizing costs through predictive analytics. Despite its potential, the integration of AI adds complexity to the benefits landscape, contributing to "point solution fatigue" among employers. Consequently, 63% of consultants report that clients seek to consolidate solutions under a single navigation system, with independent providers being the preferred choice. Additionally, preventive care is gaining prominence over chronic condition management, indicating a shift towards proactive health maintenance to reduce future healthcare costs.
