Nearly eight in 10 employers report that GLP-1s are raising their companies’ health care costs, leaving many to consider difficult choices in balancing expenses and care, according to a survey from Business Group on Health.
While most employers cover GLP-1s for diabetes, 67% of those surveyed cover the drugs for weight management, with many relying on various strategies to ensure the appropriate use of the medicines for weight management. These strategies include validating clinical eligibility via objective biometric data, requiring participation in a weight management program, limiting prescribing to specific providers, and excluding certain medications from the formulary.
For some, however, such requirements do not ease the cost pressures on health care budgets. Of those covering GLP-1s for weight management, only 72% said they were likely to continue that coverage in 2027, while 10% said they likely would not. Companies that do not cover GLP-1s for weight management today are unlikely to add coverage in the future.
“Our findings show the tremendous concern employers have regarding these medications from a cost and financial viability perspective,” said Ellen Kelsay, president and chief executive officer of Business Group on Health. “Against the backdrop of anticipated double-digit health care cost increases, fueled to a large degree by GLP-1s and overall prescription drug costs, companies cannot ignore the reality that GLP-1s have significant implications for health care budgets — and overall affordability.”
The survey, which examined coverage of GLP-1s specifically for weight management, was completed in February and March by 105 employer members of Business Group on Health. It also examined employee support programs and utilization management in the context of an expanding range of options for workers.
GLP-1s, known by brand names such as Ozempic, Wegovy, Mounjaro or Zepbound, were originally developed to help regulate blood sugar in people with type 2 diabetes. They also lead to substantial weight loss for people with obesity and show promise in helping to manage other conditions, such as cardiovascular disease, obstructive sleep apnea and substance use disorder.
The survey also found that while more than half of employers that cover GLP-1s for weight management expect the expensive medications to yield significant clinical benefits, few have yet seen evidence (such as a reduction in obesity rates and fewer employees needing bariatric surgery) within their aggregated claims.
Fully 87% of employers anticipate that the availability of an oral GLP-1 medication will result in higher demand for the drugs overall, and only 9% of employers anticipate a decrease in price.
When it comes to how much employees pay for the medications, most employers (83%) use the same standard cost-sharing arrangement they use for other medications.
Other new research, from Acosta Group, reveals that GLP-1s are reshaping consumer behavior including lifestyle, health and wellness, and personal care choices.
“We’ve learned that consumers using a GLP-1 for weight loss are experiencing additional positive emotional and behavioral impacts, ranging from their relationships with food, to how they feel about their personal appearance, to what they want to buy and how they want to dine,” said Kathy Risch, senior vice president of thought leadership and shopper insights for Acosta Group. These “halo effects” skew higher for Gen Zers and Millennials.
“We recognize the power of this younger cohort to indicate trends across categories and channels, informing what broader consumer segments will want to see on the shelf in the near future,” said Mark Rahiya, group president of omnichannel sales and services, including the Acosta and Crossmark sales agencies, for Acosta Group.
