As benefits renewal season approaches, employers, benefits advisors, and HR teams across the country are bracing for what is expected to be a challenging round of negotiations. The past year has seen alarming increases in health care premiums, leaving many companies and their employees grappling with the financial implications. A significant driver behind this surge is the unprecedented demand for weight loss drugs like Ozempic, a trend now widely referred to as the "Ozempic bump."  

This phenomenon has sparked a critical reassessment of health care options and associated costs, including the federal government negotiating directly with drug companies for the first time to determine prices for certain high expenditure drugs. Benefits advisors are now navigating uncharted territory, seeking innovative strategies to manage these rising expenses. 

The impact of the "Ozempic bump"

The "Ozempic bump" represents the ripple effect these high-cost medications have had on health care plans. Originally developed to treat type-2 diabetes, drugs like Ozempic have gained immense popularity for their off-label use in weight management. As more individuals seek these medications, insurers are facing escalating costs, which are being passed down to employers and, ultimately, to employees.