Your employer may start covering weight-loss drugs soon

Increasing Employer Coverage: A growing number of employers are considering covering popular weight-loss drugs, such as GLP-1 medications like Wegovy, especially during open enrollment for the coming year.

High Costs Limit Coverage: While these drugs are effective for weight loss, their high prices (e.g., Wegovy costs about $1,350 for a four-week supply) make coverage difficult for some employers, limiting broader access.

Varying Coverage Based on Company Size: Larger employers are more likely to cover anti-obesity medications. For instance, 67% of large companies surveyed offer coverage, while only 18% of mid-sized firms do.

Restrictions and Guardrails: Employers often impose restrictions on coverage, such as requiring prior authorization, higher BMI thresholds, or participation in weight management programs to ensure the benefit is targeted to those who need it most.

Rising Health Care Costs: The overall cost of health benefits is increasing, driven by higher prescription drug prices and healthcare expenses. Employers may need to adopt cost-cutting measures, like adjusting deductibles or shifting more costs to employees.