Employers aren't expanding coverage of GLP-1 obesity drugs: survey

Key Points:

• A recent survey by the International Foundation of Employee Benefit Plans found that only 36% of U.S. employers cover GLP-1 drugs for both diabetes and weight loss, with most focusing coverage on diabetes alone due to cost concerns.
• Employer coverage of GLP-1s for weight loss has remained flat compared to last year, as high drug costs have led many health plans to restrict or avoid coverage despite increasing demand.
• To manage costs, about 27% of employers encourage employees to obtain GLP-1s through direct-to-consumer platforms, and 21% promote using flexible spending accounts or health savings accounts for these treatments.
• Many employers support weight loss through alternative benefits such as disease management programs, nutritional counseling, bariatric surgery, and lifestyle modification, rather than covering GLP-1 drugs directly.
• Broader adoption of GLP-1 coverage for obesity may depend on evidence showing that these drugs reduce costs elsewhere, such as fewer surgeries or improved productivity; Medicare’s new 18-month coverage program may provide important data on potential savings.