Employers Reducing GLP-1 Weight Loss Drug Coverage Amid Rising Healthcare Costs
A growing number of employers are scaling back or removing coverage for GLP-1 weight-loss medications from their health insurance plans. According to a WTW survey, the percentage of companies with over 100 employees covering these drugs fell to 53%, marking the first decline in three years. This shift is driven by soaring healthcare costs; Marsh predicts an average 8.2% rise in employee health insurance costs for 2027, with GLP-1 usage contributing significantly to this trend. To mitigate expenses, many companies are transitioning from direct prescription coverage to alternative models, such as directing employees toward direct-to-consumer platforms like Eli Lilly's LillyDirect or Novo Nordisk's NovoCare. While some large corporations, including Bank of America, continue to view these drugs as a worthwhile long-term health investment despite high costs, the economic pressure is forcing many employers to balance employee empathy with fiscal sustainability.
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Topics: corporate spending employee benefits GLP-1 drugs healthcare costs
Part of the story BANK OF AMERICA CORP /DE/ - 4 Filing (395 articles)