How specialty medications are reshaping employee health benefits
Few developments in the pharmaceutical industry have generated as much attention in recent years as GLP-1 medications. Originally developed to manage Type 2 diabetes, these drugs have expanded into new areas of treatment, creating both new opportunities for patient care and growing cost considerations for employers and health plans.
From Diabetes Treatment to a Growing Market
GLP-1, short for glucagon-like peptide-1, refers to a class of medications that mimic a naturally occurring hormone involved in regulating blood sugar and appetite. The FDA approved the first GLP-1 medication in 2005 to treat Type 2 diabetes.
The market took off in 2021, when Wegovy received FDA approval for chronic weight management. Since then, additional medications and growing awareness of their weight loss benefits have fueled demand, expanding GLP-1s beyond diabetes treatment into a much larger market that includes weight management and cardiovascular health.
The Cost Behind the Demand
GLP-1s are one example of the growing cost of specialty medications, which can also include cancer treatments, autoimmune therapies and other complex, high-cost drugs. While these medications offer important benefits, many come with significant price tags. Brand-name GLP-1s have historically cost more than $1,000 per month, with few lower-cost alternatives available.
The impact is showing up in employer health plans. According to the 2026 Benefitfocus State of Employee Benefits Report, GLP-1s accounted for 20.3% of prescription drug spending in its analyzed employer population in 2025, up from 17.5% in 2024. Members taking these medications cost plans nearly $7,400 annually in drug expenses alone.
The broader trend is also reflected in Blue Cross Blue Shield Association reporting. In September 2026, more than 83% of surveyed BCBS companies identified prescription drug spending as a major contributor to rising insurance premiums, particularly specialty medications and GLP-1s.
These rising costs mean greater pressure for employers when it comes to pharmacy benefits, renewal rates and decisions about which treatments their plans can afford to cover.
Balancing Access & Affordability
Cooperatives have options for managing specialty drug costs, including coverage guidelines, prior authorization and lower-cost alternatives when available. But determining the right approach requires balancing employee needs, plan coverage and long-term costs.
This is where ABC’s partnership with Wellmark provides value. ABC works closely with Wellmark to help cooperatives navigate changing pharmacy costs, evaluate coverage options and identify opportunities for savings. Through ABC’s collective purchasing advantages and resources, cooperatives have additional support in managing healthcare expenses while maintaining competitive benefits.
As new medications, treatment options and potential cost-saving alternatives enter the market, ABC and Wellmark will continue working together to help cooperatives make informed benefits decisions.
Resources
https://www.wellmark.com/blue-at-work/insights/navigating-pharmacy-costs-and-coverage
https://www.bcbs.com/news-and-insights/article/what-drives-health-insurance-premiums
https://www.fda.gov/drugs/drug-safety-communications/update-fdas-ongoing-evaluation-reports-suicidal-thoughts-or-actions-patients-taking-certain-type
https://www.wellmark.com/about/affordability