Morning Business Report: U.S. businesses face soaring health costs, Oracle’s Ellison becomes world’s richest

U.S. businesses are bracing for the sharpest rise in employee health-insurance costs in more than 15 years.

3 hours ago

Keenan Gibson,

(LILAMAX)- U.S. businesses are bracing for the sharpest rise in employee health-insurance costs in more than 15 years. Employer coverage is projected to surge about 9.5% in 2026, according to estimates from Aon. A separate employer survey by WTW pegged the increase at 9.2%. Insurers attribute the higher premiums to rising healthcare costs, including more expensive hospital care, greater use of services, and costly drugs such as GLP-1 weight-loss and diabetes treatments.

In healthcare supply news, the United States will increase production of amoxicillin following a deal between Walmart, McKesson, and USAntibiotics, the nation’s lone manufacturer of the widely used antibiotic. Under the agreement, USAntibiotics says it will produce enough to meet 100% of national demand, with Walmart pharmacies set to carry the U.S.-made supply.

Wall Street continues to rally, with stocks reaching fresh records Wednesday after new inflation data boosted investor optimism about upcoming Federal Reserve rate cuts. The New York Stock Exchange also upheld its tradition of honoring victims of the September 11th attacks, observing a moment of silence at 9:20 a.m. before the opening bell.

In labor news, striking Boeing defense workers may soon return to the job. Their union, the International Association of Machinists and Aerospace Workers, announced a tentative five-year agreement with the company. The deal includes higher wages and restores a signing bonus. Members, primarily based in St. Louis, Missouri, are scheduled to vote on the agreement Friday.

Meanwhile, Oracle founder and CEO Larry Ellison has overtaken Elon Musk as the world’s richest person. Ellison’s fortune swelled by $100 billion after Oracle shares soared on booming demand for its artificial intelligence business, pushing his net worth to $383 billion at Wednesday’s close.