Healthcare costs are rising in the U.S. for employers — and workers are feeling the burden, too. 

According to a Gallagher report on well-being in the U.S., 9 in 10 employers who responded to a survey said they’d seen increases in their health plan premiums, and one-quarter of those said they’d had double-digit increases. Many are struggling to budget for the rising costs, with around half of employers in the same survey saying they have effectively managed healthcare costs. 

What accounts for the rising costs? Prescription drugs, particularly new GLP-1 medications to treat conditions like diabetes and obesity, remain a big factor, with one report noting an 8.6% increase in price. Inflation is hitting health plans harder as well, after a delay of about a year, according to Mercer. 

Employers are split on how to pay for rising costs, with roughly half telling Mercer they’d shift costs onto workers and the other half saying they’d refrain from doing so.

Whatever the approach, it’s clear workers are still struggling to manage the costs as well, with many reporting they’d delayed medical care due to costs and even insured workers saying they were in serious medical debt, per a February report. 

Read on to unpack the factors affecting healthcare cost — and what employers are doing in response.