Healthcare Rebuilt.
Healthcare in America costs more than $5 trillion a year, and it's only getting worse for the people who pay for it, deliver it, and depend on it. On Healthcare Rebuilt, host Boe Hartman cuts through the administrative waste to show you what's broken, what's working, and how a new model is already changing lives across the country. Each episode, he talks with the people making real cost, real care, and real change happen.
Healthcare Rebuilt.
The 3% Problem: Why Cutting GLP-1s Won't Save Your Healthcare Budget
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As employers face a third year of double-digit health insurance increases, CFOs and HR leaders are scanning their budgets for cuts. One line item keeps standing out: GLP-1 spending on weight loss and diabetes drugs like Wegovy, Ozempic, and Mounjaro. In response, the natural question most employers are asking is "What if we just cut these drugs to get our budget back on track?"
But here's what might surprise you: GLP-1 drugs account for only 3% of total healthcare spending. In this episode of Healthcare Rebuilt, host Boe Hartman sits down with Dr. Rani Aravamudhan, Vice President of Analytic Consulting and Medical Director at Artemis, who analyzed millions of healthcare claims to understand what's really driving skyrocketing costs. While GLP-1 spend rose 124% in two years, Dr. Aravamudhan reveals the real culprits: outpatient visits up 33.7%, professional services up 27.9%, and emergency room visits up 34.3%.
The conversation challenges the impulse to simply cut GLP-1 coverage and instead advocates for a more holistic approach. Dr. Aravamudhan explains that dropping coverage might save money in the short term but could lead to significantly higher long-term costs from diabetes complications, heart disease, and kidney disease. The real issue isn't GLP-1s; it's employers' lack of cost visibility and control across all care categories.
In this episode:
- Why 2026 health insurance renewals are showing 6-9% increases (or higher for smaller companies).
- What Artemis's analysis of millions of claims revealed about GLP-1 spending.
- The real cost drivers: outpatient, professional services, and ER visit increases.
- Why GLP-1s represent only 3% of total healthcare spend.
- Long-term health benefits of GLP-1 medications beyond weight loss.
- How cutting GLP-1 coverage today could lead to higher costs tomorrow.
- The role of prior authorization in managing appropriate GLP-1 use.
- Why employers are "buying blind" without complete claims data.
- How direct-to-provider contracting and real-time analytics change the game.
- Practical actions employers can take right now to get ahead of rising costs.
- Dr. Aravamudhan's optimism for employers navigating healthcare cost pressures.
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