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GIC briefed on 10.5% preliminary FY26 premium increase; consultants and CFO warn GLP‑1 drug spending and provider pricing are driving budget pressure
Summary
Consultants from WTW told the Group Insurance Commission that a status‑quo, preliminary FY26 full‑cost premium increase is about 10.5%, largely driven by GLP‑1 drug uptake; the CFO reported the GIC is roughly $100 million over budget through November and staff are coordinating with Administration & Finance on funding options.
Consultants from Willis Towers Watson (WTW) told the Group Insurance Commission that, on a status‑quo basis with no plan‑design changes, the GIC faces a preliminary aggregate FY26 premium increase of "around 10 a half percent," driven by rising unit costs, utilization and rapid growth in GLP‑1 drug use for diabetes and obesity.
"This is our status quo estimate…an initial expected increase of around 10 a half percent for FY 26," the WTW presenter said, noting the projection covers both non‑Medicare and Medicare plans and that plan‑level impacts will vary.
WTW highlighted GLP‑1 drugs as a central cost driver: use in…
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