More companies covering weight loss drugs for their employees
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- A growing percentage of U.S. companies are covering weight loss medications under health insurance plans for their workers.
- A new survey of employer-sponsored health plans from Mercer found that among companies with at least 500 employees, ~44% covered weight loss drugs in 2024. In 2023, that figure was 41%.
- Among companies with 20,000 or more employees, 64% covered weight loss drugs in 2024 compared to 56% in 2023.
- Given the high cost of the medications, just 5% allow their prescribing without any authorization.
- The report noted that nearly all health plans cover GLP-1 medicines — the most popular class of weight loss drugs — when they are used to treat type 2 diabetes.
- Two of the most popular weight loss medications are Novo Nordisk’s (NVO) Wegovy (semaglutide) and Eli Lilly’s (NYSE:LLY) Zepbound (tirzepatide).
- The increase in coverage “may reflect the hope that GLP-1 medications will turn the tide on the obesity epidemic and positively impact downstream medical costs,” the report states.