Business
Health care inflation rises as patients, employers brace for biggest jump in health spending in 15 years
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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
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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
UAE stock markets close, trading halted by Abu Dhabi Securities Exchange and the Dubai Financial Market for two days amid Iran–US–Israel war fallout – The Times of India
In an unprecedented economic response to escalating regional conflict, the United Arab Emirates has announced that its two major financial markets, the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM), will remain closed on Monday, March 2 and Tuesday, March 3, 2026. The decision comes as the UAE reels from a series of retaliatory Iranian strikes following coordinated US and Israeli military actions against Iran, which have destabilised Gulf business sentiment and prompted sweeping security and economic precautions.The UAE Capital Markets Authority said that keeping the exchanges closed temporarily is part of its supervisory and regulatory mandate, providing authorities and market participants time to assess the impact of recent events on financial infrastructure and investor confidence. The halt affects equities, derivatives and trading in hundreds of billions of dollars in listed assets and is among the clearest signs yet of economic shockwaves from the regional crisis.
Why UAE stock markets are paused: Regional conflict among Iran–US–Israel disrupts confidence
The closures follow Iran’s retaliatory missile and drone strikes on Gulf cities and strategic targets, including airports and other infrastructure, after a joint US–Israel offensive. These attacks have not only led to safety measures such as airspace restrictions and travel advisories but also triggered widespread business disruption across the Gulf. Major airports in Dubai and Abu Dhabi have seen operations halted or altered and commercial hubs from ports to retail centres have felt the strain.
UAE Markets Shut Down: Is This Economic Capitulation to Regional War?
Financial markets are typically among the first economic indicators affected by geopolitical instability. When investors fear prolonged unrest, they often pull funds from equities and seek so-called “safe-haven” assets like gold, sovereign debt or commodities such as oil, especially when conflict threatens critical energy supply corridors like the Strait of Hormuz.
Regional market turmoil and knock-on effects in the Middle East amid Iran–US–Israel clashes
While the UAE exchanges are closed, other Gulf markets that remained open on Sunday experienced significant sell-offs as investors reacted to the turmoil:
- Saudi Arabia’s benchmark index saw sharp drops before partially recovering as investors weighed conflict risks against energy price gains.
- Muscat and other regional bourses also slid, reflecting broader risk-off sentiment.
- In Kuwait, authorities took the rare step of suspending trading indefinitely due to “exceptional circumstances” linked to the same regional tensions.
Financial markets are serving as a barometer of risk and economic confidence and the dramatic moves across the Gulf underscore how intertwined political stability is with economic performance in the region.
What the UAE’s stock market closure means for investors
For both domestic and international investors, the temporary shutdown of ADX and DFM has several implications. Liquidity and price discovery are paused, leaving billions of dollars in listed assets in limbo. Risk premiums on Gulf assets may rise, as traders reassess exposure during periods of heightened uncertainty. Investor sentiment is likely to remain fragile until there are visible signs of de-escalation or credible diplomatic resolutions.Economists note that halting trading does not eliminate market pressure, it simply delays it and when markets do reopen, there may be sharp moves as investors recalibrate positions based on new geopolitical and economic realities. The conflict has not just shaken stock markets, energy markets have also reacted. Reports from analysts indicate that crude oil prices have surged as fears of supply disruptions increase, with the Strait of Hormuz, a crucial passage for roughly 20% of global oil exports, under theoretical threat of closure.
UAE Stock Markets Closed: What Does This Mean for Global Investors Amidst Escalating Conflict?
Higher oil prices can partially offset stock market pain in energy-exporting economies like the UAE but the overall economic impact remains complex. Other sectors, from tourism and hospitality to trade and logistics, have also felt immediate fallout: airport shutdowns have stranded travellers and corporate events and networking key to Ramadan business cycles have been postponed, compounding uncertainty.
UAE government messaging and future prospects
UAE authorities have stressed that public and economic safety remain top priorities. The temporary market closure is coupled with broad advisories across transportation, education and public services, such as airports issuing travel advisories and schools moving to remote learning, aimed at ensuring operational stability while the situation evolves. Officials have pledged to monitor conditions closely and communicate updates on any further market action. This includes potential rescheduling of reopening dates for ADX and DFM or additional measures to support investors once trading resumes.The UAE Capital Markets Authority ordered a two-day closure of the Abu Dhabi and Dubai stock markets on March 2–3, 2026, in response to escalating regional tensions. The pause follows retaliatory strikes by Iran after US and Israeli military action, which have disrupted markets, air travel and business operations across the Gulf. Gulf markets that remained open experienced sharp declines and volatility, reflecting investor risk aversion. Oil prices and safe-haven assets have climbed as geopolitical risk fuels global economic uncertainty. Authorities will continue to assess and communicate market developments as conditions evolve.
BA and Virgin Atlantic are among major airlines to ground services to the Middle East in light of the attacks.
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International shipping is said to have come to a standstill at the strait’s entrance, with fears of disruption already pushing up global oil prices.
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