Business
Health care inflation rises as patients, employers brace for biggest jump in health spending in 15 years

Jose Luis Pelaez Inc | Digitalvision | Getty Images
Health-care inflation is fueling higher coverage costs, setting the stage for what could be the largest increase in health-care spending by large employers in 15 years.
Medical care costs in August rose 4.2% on an annualized basis, according to the Labor Department’s Consumer Price Index, compared to an overall inflation rate of 2.9%. The cost of doctors’ visits climbed 3.5%, while hospital and outpatient services jumped 5.3%.
Those price increases are contributing to higher health insurance costs for 2026. Consumers who don’t qualify for government subsidies to buy health coverage on the Affordable Care Act exchanges could face double-digit premium increases for next year, according to early filings from insurers.
Workers with employer health coverage could also have to pay higher premium and out-of-pocket costs next year.
Large employers are projecting their overall health coverage costs will rise an average of 9% in 2026, according to several business group surveys, which would be the highest level of health-care inflation since 2010.
More than half of companies surveyed by benefits consulting firm Mercer earlier this year said they are considering passing on some of those increases to workers, but the Business Group on Health says most large employers in its survey are looking for other ways to cut costs.
“Employers have shied away in every way possible, from passing on costs to employees. This year, we see the first indication that they may look to pass some of that on to employees, but again, only as a last resort. They’re going to try and pull as many other levers as possible,” said Ellen Kelsay, BGH president and CEO.
Employer cost drivers: cancer drugs and GLP-1s
Shana Novak | Stone | Getty Images
Prescription drug prices rose 0.9% in August, according to the Consumer Price Index, which considers a range of widely-used generic and brand-name drugs.
But for large employers, expensive drugs are the major drivers of higher health spending.
Companies surveyed by BGH are projecting a 12% increase in pharmaceutical costs next year, on top of an 11% hike this year fueled by cancer drugs and diabetes and obesity treatments like Novo Nordisk’s Wegovy and Ely Lilly’s Zepbound.
“Cancers have been for the fourth year in a row, the top condition driving healthcare costs — cancers at younger ages, later stage diagnoses,” said Kelsay, who added that pricy weight loss drugs are are a close second.
“When it comes to the treatment of obesity, that has been the space that has been the most frothy for the past two to three years and has been what has fueled a lot of this pharmaceutical spending,” she said.
Nearly two-thirds of employers with 20,000 workers or more offer access to weight loss drugs known as GLP-1s, according to Mercer. Less than half of small employers surveyed plan to offer access in 2026.
With growing demand for the drugs, more companies are tightening eligibility requirements and beginning to explore more affordable ways to provide access for their employees, including the cash-pay market.
Cash-pay GLP-1s
A telehealth executive whose firm offers compounded GLP-1s told CNBC that some large employers are quietly letting workers know they can use health savings accounts to buy the medications for less in the cash market.
“They are worried about how much [the drugs] cost, but that doesn’t mean they don’t think their employees shouldn’t have access to them. They just don’t want to have to pay for it,” said the executive, who spoke on condition of anonymity because of the confidential nature of the discussions.
Health account data shows more workers are turning to direct-to-consumer options, including Eli Lilly’s Lilly Direct and Novo Nordisk’s Novocare online pharmacies, both of which offer their weight loss drugs at roughly half the list prices of more than $1000.
GLP-1 purchases are now the top category of cash-pay spending in pre-tax flexible spending and health savings accounts, for expenses not covered by insurance, according to the CEO of health payments processor Paytient.
“We see a tripling from last year to this year of usage at GLP-1 oriented providers. These are places like Lilly Direct, like Ro, like Hims & Hers, and that’s a growing segment,” said Paytient founder and CEO Brian Whorley.
But employers worry that the cash-pay trend leaves lower-income workers out of the equation because they can’t afford the out-of-pocket costs. That is prompting discussions about how their companies can obtain cash-pay prices to help boost more equitable access for employees.
Self-insured employers have contracted directly with so-called Centers of Excellence for specialty medical care such as cancer treatment and joint replacements. But they can’t currently do the same for many drugs. Under agreements with pharmacy benefit management firms, or PBMs, both the drugmakers and employers would violate their contracts by using a direct cash-pay process.
But employers are increasingly pressing PBMs for better options, says BGH’s Kelsay. They are beginning to consider new types of benefit managers, which are proposing new payment models for drugs in the development pipeline.
“There are some new entities — some startups in this space — that are building out products and solutions where they are going on behalf of a pooled group of employers to negotiate with manufacturers on certain cell and gene therapies,” she said.
Paytient’s Whorley calls the challenge of making GLP-1s more affordable a stress test moment for employers and PBMs.
“They’re at a perfect sort of Venn Diagram of clinically effective drugs that change people’s lives, that increasingly will force a choice,” when it comes to financing, Whorley said. “If we get this right, it can provide a blueprint for all the drugs like GLP-1s that will … present challenges for health plans.”
Business
Adani Power, Adani Green: Adani Stocks Soar Up To 9% As SEBI Dismisses Hindenburg Allegations

Last Updated:

News18
Adani Group stocks, including Adani Enterprises, Adani Green Energy, Adani Power, and Adani Ports & SEZ, rallied as much as 9% in Friday’s session after the Securities and Exchange Board of India (SEBI) dismissed allegations by US-based short-seller Hindenburg Research. The regulator said that while related-party transactions through entities such as Adicorp, Milestone, and Rehvar did take place, they were fully disclosed and complied with existing regulations.
September 19, 2025, 09:53 IST
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Business
‘India & China are ancient civilisations’: Russia slams Trump tariffs; warns threat won’t work – The Times of India

Russia slammed US tariff threats against India and China, calling them “ancient civilisations” and claiming that threat to them “won’t work,” and that both the nations are unlikely to bow down to ultimatums.Speaking on Russia’s main Channel 1 TV programme “The Great Game,” Foreign minister Sergei Lavrov said, “Both China and India are ancient civilisations. And talking to them like ‘either you stop doing what I don’t like or I’ll impose tariffs on you’ won’t work. And the ongoing contacts between Beijing and Washington, between New Delhi and Washington, show that the American side understands it, too.”The comments came against the backdrop of escalating US criticism of India for continuing to import oil from Moscow despite the ongoing Russia-Ukraine war.The Donald Trump administration recently hiked tariffs on Indian goods from 25% on August 7 to 50% by August 27, directly citing New Delhi’s oil purchases from Moscow.Lavrov pointed out that US trade threats have forced countries like India and China to look for “new markets, new sources of energy supplies” and pay higher costs.“Besides the fact that this undermines the economic well-being of those countries, it at least creates very serious difficulties for them, forcing them to seek new markets, new sources of energy supplies, (and) forcing them to pay higher prices,” he said.“But beyond this, and perhaps even more importantly than this, there is a moral and political opposition to this approach,” he added.
Trump: Close ties but tough measures
During his recent state visit to Britain, Trump struck a contradictory tone, stressing his personal ties with Prime Minister Narendra Modi even as he defended sanctions on India.“When I found out that the European nations were buying oil from Russia, I am very close to India and to the PM of India, I wished him a happy birthday the other day, we have a very good relationship, but I sanctioned them (India),” he said.“If the price of oil comes down, Putin will have no choice but to drop out of that war,” he added. He further argued that India’s continued energy trade with Moscow was “not playing fair with the US.”White House trade adviser Peter Navarro echoed this hard line, branding India the “maharaja of tariffs” and accusing Indian refiners of “profiteering” by working closely with Russian suppliers after the invasion. “Indian refiners were in bed with Russian refiners immediately after the invasion. They make money off us via unfair trade and many workers get screwed. They use that money to buy Russian oil, and Russians use that to buy weapons,” Navarro alleged.
Lavrov dismisses Russia sanctions
Lavrov, however, dismissed concerns over new rounds of sanctions, saying Russia had already adapted to such measures. “Frankly speaking, I don’t see any problem with the new sanctions imposed on Russia. An enormous amount of sanctions, unprecedented for that period, were imposed during President Donald Trump’s first term,” Lavrov said.Reflecting on the broader trajectory of US policy, he added, “We have started to draw conclusions from the situation when the West imposed these sanctions. Later, during President Joe Biden’s term, sanctions were used as a replacement for any diplomatic effort. There was no search for a compromise.”Despite tensions, India and the US have been in talks for an interim trade deal over the past few months. But with tariffs rising and geopolitical pressures mounting, both New Delhi and Beijing continue to assert their independent paths, reinforced by Moscow’s backing.
Business
University students like me are happier living at home – here’s why

Iolo CheungBBC Wales and
Ellie CarterBBC Wales

Leaving home to go to university was once considered a rite of passage.
But university student Kirsty Holpin, who lives with her grandmother and drives to lectures each day, says only two of her course mates actually live on campus.
“The rest of us travel in,” says the 23-year-old, who is one of a growing number of students choosing to live at home with family instead of moving into student digs.
UCAS figures suggest the number of students intending to live at home has doubled in the last 20 years, with rising rent cited as a major factor. Other reasons include shifting priorities towards academic study, rather than drinking and socialising.
Now in her third year studying psychology and criminology at the University of South Wales, Kirsty drives 35 minutes from her home in Fochriw, Caerphilly county, to the campus in Treforest, Rhondda Cynon Taf, to attend lectures.
“When we were pricing it up [for halls] it was extortionate,” she said.
“So as a family it was, ‘would you rather stay home, or go and basically work your butt off to make rent?'”
Kirsty admits that the decision did leave her more “isolated” when it came to social opportunities, but doesn’t regret her choice.
‘Not much of a drinker’
Kirsty admits living on campus would have given her a better social life.
“But I’m not much of a social drinker anyway,” she said.
“And I can always travel down to university if I need to for events, and make time for that.
“At home I have a brilliant, supportive environment, so I can get everything done like assignments – if I was at uni halls, I probably wouldn’t have achieved as much as I have.”
She says blended learning has made things easier for her and others, with more lectures now having the option of being attended remotely.
And without the need to be on campus every day, some students are going to extreme lengths.
“There’s a girl I met last year who was travelling from the West Midlands,” says Kirsty.
“She said it’s much easier to book a hotel room and spend £90 a night when she needs to come down, than spend £600 on rent.”
A recent survey by campaign group Save The Student found that 15% of students in the UK now live with parents or guardians – an increase from 12% in 2020 – with average travel times to campus also rising from 21 to 26 minutes.
“It doesn’t sound like a huge change, but if you look at it in terms of the number of students across the UK, that is quite a significant movement,” said spokesperson Tom Allingham.
In Wales, students now spend an average of £473 a month on rent, while in England the average figure is £556 and in Scotland it is £663, according to Save The Student.
“It’s no surprise that we’re seeing this change, because of factors like the availability and cost of housing, and bills,” says Deio Owen, president of the National Union of Students (NUS) in Wales.
“And stories we see all the time about problems in student housing doesn’t help the narrative, it doesn’t entice people to move to student accommodation.”
But priorities may also have shifted, says Mr Owen, with many students not feeling that a campus lifestyle is key to their university experience any more.
“The traditional idea of people going to university to go out drinking and stuff, that’s not necessarily the de facto behaviour of students anymore,” he says.
“People are deciding to stay in, do sober socials, and students’ unions are key for that to work.
“So it’s crucial that any students who decide not to move to a campus-based university, or close by, don’t miss out on that socialising.”

Isaac Williams, 20, is studying for a Culinary Arts degree at Coleg Llandrillo in Conwy, and says living at his family home and travelling 15 minutes to campus each day “just made sense”.
For him, academic and financial considerations are more important factors than socialising.
“I just want to go to uni so I can get my degree, and have a more successful career,” he says.
“I’ve got a group of friends from other aspects of my life.
“And I have an older brother who’s also staying at home while doing a uni degree. So it just works out well money-wise.”

‘I was getting crazy fomo’
But at the University of South Wales’ freshers event in Cardiff, many students were still keen to embrace the chance to move out of their parents’ house while studying.
“It was just to get the taste of independence, a sort of practice run for living on your own,” said Sophie Davies, 20, from Neath.
Her friend Morgan Lees, 18, from Merthyr Tydfil, added: “Staying at home while being at uni takes away some of the social aspects of it, and that was really important for me.”
Sophie Evans, 20, from Pontypridd, Rhondda Cynon Taf, started off living at home – but only took a month to change her mind and move into university accommodation.
“Everyone else was going out and stuff, I was getting crazy fomo [fear of missing out], and I was booking hotels or staying with people,” she said.
“So I thought it was better if I move away and have that sense of independence, and I did – having to budget by myself and live like a functioning person.”
Joe Williams, 20, from Swansea said the social life had been a key factor in choosing to live on campus.
“Just being around everyone, it was easy,” he said.
“I go back [home] often enough. The costs aren’t too bad, and I was going back home on weekends to work, so it was OK.”
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