In 2024, family premiums for employer-sponsored health plans saw a 7% increase, with most employers absorbing the majority of the cost, according to a report by KFF. The average premium for single coverage hit $8,951, while family coverage reached $25,572. Despite these rising costs, employers largely chose not to expand their benefits to include treatments like weight-loss drugs (GLP-1s) or in-vitro fertilization (IVF).
Over the past few years, premiums have steadily climbed alongside inflation, yet many employers opted against passing these costs onto employees. For instance, the average deductible for single coverage only saw a slight increase, rising from $1,735 in 2023 to $1,787 in 2024. This restraint in shifting costs reflects the challenges employers face in a competitive labor market, where burdening workers with higher healthcare expenses is increasingly difficult.
However, the generosity of employers had its limits, particularly when it came to offering certain health benefits. Most large employers, for example, did not cover IVF or GLP-1s, drugs originally designed to treat diabetes but now popular for weight loss. Although there is growing consumer interest in these medications, especially with projections that up to 30 million Americans may use GLP-1s for weight loss by 2030, fewer than 20% of large firms included these drugs in their benefits package for 2024.
Those that did offer coverage for GLP-1s often required employees to meet strict conditions before obtaining the medication. In some cases, employees had to consult with a dietitian, psychologist, or case worker, or participate in a lifestyle or weight loss program. This cautious approach likely stems from concerns about the high cost of these drugs, which can range from hundreds to thousands of dollars per dose. In fact, a third of large employers that offered GLP-1s expected a significant impact on their prescription drug spending.
Looking ahead, employer healthcare costs are projected to rise another 9% in 2025. Given this outlook, it’s unlikely that many employers will add costly treatments like GLP-1s to their plans. Only a small fraction of large firms, about 3%, indicated they were very likely to cover these drugs in the near future, with around 25% expressing they were somewhat likely. As a result, major expansions in health benefits may remain limited as companies grapple with rising costs.
