POPULAR weight loss drugs are causing health insurance costs to skyrocket by nearly ten percent.
Health insurance costs are expected to rise the most in the past five years, mainly due to weight loss drugs and increased tariffs.
Millions of Americans will be affected by the increase in health insurance costs[/caption]
The increase is largely attributed to the rise of GLP-1 drugs[/caption]
It is estimated that at least 6 per cent of the US population is currently taking the increasingly popular jabs, according to a recent KFF health tracking poll.
This translates to just over 20 million Americans.
Next year, businesses will need to pay a nine percent increase on health insurance plans, which will likely affect the cost of insurance for employees, The Washington Post reported.
The 24 million Americans enrolled in the Affordable Care Act will see a 75 percent increase in costs next year.
The rise in costs is primarily attributed to the increase in GLP-1 drugs used for weight loss, such as Ozempic, and Trump’s tariffs on pharmaceutical imports.
Recent reports cite the price hikes to the liberal use of weight loss medicine.
“We are seeing a continued surge in utilization of the GLP-1 drugs,” Debbie Ashford, a chief actuary at Aon, told The Washington Post.
Ashford said use of GLP-1 medicine rose by 92 percent in 2023.
In 2024, the use of GLP-1 increased by an additional 56 percent.
In 2025, the popularity of the drug continues at a similar pace.
For some, GLP-1 medication can cost as much as $800 per month.
One survey indicated that 90 percent of employers are paying for the weight loss medication only after prior authorization reviews.
Nearly half require that patients be substantially overweight as determined by their body mass index.
Those on GLP-1 medication already face additional restrictions and protocols, as individuals traveling with the medicine are required to declare it on their travel insurance.
Experts urge GLP-1 users to inform their travel insurer that they’re taking the medicine, as failure to do so could result in a hefty bill.
If GLP-1 users don’t claim the medicine on their insurance, they risk having their policy invalidated.
Failing to inform their insurance provider about their GLP-1 medication could lead insurers to refuse to pay out, even if it’s unrelated to the treatment.
“If you’re prescribed these drugs for obesity, diabetes, or any other condition, it’s essential to declare both the medication and the underlying health issue when buying your policy,” Kara Gammell, from price comparison website Money Supermarket, told Bristol Live.
“Failing to do so could invalidate your cover – even if your claim has nothing to do with the treatment.”
GLP-1 users are encouraged to check with their insurance company before traveling to see if the rule impacts their policy.
