The Pharmacy Cost Problem Employers Think They’re Solving – and the One They’re Not
By Alliant Employee Benefits / February 04, 2026
2025 was a year of turmoil in an already complex pharmacy industry. What was once a manageable category now represents more than a quarter of total health plan spend, and for many organizations, it is growing faster than any other cost component.
Looking ahead to 2026, employers are projecting 11–12%, increases, driven largely by GLP-1 utilization and high-cost specialty drugs. The challenge is no longer whether pharmacy costs will rise, but how deliberately they are managed.
What makes pharmacy especially challenging is not just its growth, but that it is a convoluted mix of trend drivers. A small segment of utilization frequently drives most of the financial risk, yet traditional reporting treats pharmacy as a uniform expense.
Are your pharmacy benefits being managed for yesterday’s market or tomorrow’s risk?
That disconnect matters
When visibility stops at aggregate trend, employers are forced into decisions that trade predictability for simplicity, often without addressing the true sources of volatility embedded in their pharmacy plan.
Disclaimer: This document is designed to provide general information and guidance. This document is provided on an “as is” basis without any warranty of any kind. Alliant Insurance Services disclaims any liability for any loss or damage from reliance on this document.
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