Interest in GLP‑1 medications—especially Ozempic—is rapidly increasing, and many employees now see access to these drugs as a valuable workplace benefit.
What the Data Shows
- A recent BenefitNews survey found that 39% of millennials and 35% of Gen Z say access to weight-loss drugs would improve their job satisfaction or productivity.
- More than 25% say they’d be more inclined to take a job that includes drug coverage, and some have considered switching jobs to gain access.
- Only 14% of Americans believe insurance should cover weight-loss drugs for everyone. Support is higher when these drugs are used for specific medical conditions like obesity or diabetes.
Why Employers Are Reconsidering Benefit Plans
Employers are facing a difficult decision:
- Rising costs and increased usage: GLP‑1 medications now account for a growing share of healthcare spending.
- Larger firms are more likely to offer coverage: Companies with 500 or more employees are leading the way, while smaller firms often exclude these medications or apply restrictions.
- Health strategy integration: To offset costs, some employers require participation in weight management or behavioral programs as a condition of coverage.
Balancing Act: Costs vs. Benefits
Employers must weigh:
- Short-term financial impact: Ozempic and similar medications can cost over $1,000 per month before rebates. In some companies, GLP‑1s are already the top pharmaceutical expense.
- Long-term potential: These medications may reduce absenteeism, improve chronic condition outcomes, and support employee retention—potentially offsetting their high initial cost.
Best Practices for Employers
- Define eligibility: Many employers restrict access to employees with Type 2 diabetes or obesity based on BMI.
- Apply cost controls: Employers may cap coverage amounts, limit duration, or cover only lower-cost alternatives.
- Pair with wellness initiatives: Combining medication coverage with lifestyle programs (nutrition, exercise, behavioral health) increases effectiveness and helps control costs.
Why This Trend Is Important
GLP‑1 medications have become more than a health issue—they’re now seen as a workplace benefit that can influence recruiting, retention, and employee engagement. For younger workers in particular, access to these drugs is often tied to how they view their employer’s support for health and well-being.
What’s Next
As generic versions of GLP‑1 drugs become available in the coming years, employer coverage decisions may shift significantly. For now, each organization must decide whether these high-cost medications are a strategic investment or a financial risk.
If you’re considering whether and how to offer coverage for GLP‑1 medications, or want help crafting your employee communication strategy, contact us at Eriksen Insurance. We can help you evaluate your options and design a benefit plan that aligns with your goals.