Employers Face Dilemmas Over Coverage of Weight-Loss Drugs Amid Soaring Costs

As the demand for GLP-1 weight-loss drugs like Wegovy and Zepbound increases, employers grapple with insurance coverage decisions, balancing employee health benefits against significant financial implications.

• Many U.S. companies are struggling with health insurance coverage for GLP-1 weight-loss drugs, facing high costs and lack of long-term data on effectiveness.
• Novo Nordisk and Eli Lilly's weight-loss drugs have seen soaring prescription volumes, with Novo Nordisk acquiring Catalent to boost manufacturing capacity.
• A survey found 76% of companies provided GLP-1 drug coverage for diabetes, but only 27% for weight loss, highlighting the coverage gap.
• Employers implementing coverage face annual costs of $18,000 per employee, prompting some to reconsider or restrict coverage.
• Novo Nordisk penalizes employers for limiting drug use, leading to coverage challenges and disputes over discounts with pharmacy benefit managers.

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