Two-thirds of employers surveyed by the Business Group on Health cover GLP-1 drugs to treat obesity.
The Business Group on Health, which represents large employers, published its annual survey of employers Aug. 20. The survey included 125 large businesses with a total of 17.1 million employees.
Employers surveyed projected healthcare costs will rise 7.8% on average in 2025, the highest increase in a decade. Pharmacy spending is the largest contributor to rising costs, according to the Business Group on Health.
Most employers surveyed reported being concerned or very concerned about the appropriate use or long-term cost of GLP-1 and other new weight loss drugs.
Around 1 in 5 employers surveyed said they would "implement immediately" limiting or reducing coverage for GLP-1s, and another 30% said they would strongly consider doing so.
GLP-1 medications approved for weight loss include Wegovy, Saxenda and Zepbound. These drugs can cost upward of $1,000 a month.
Some employers have stopped covering the drugs, citing high costs. In June, Blue Cross Blue Shield of Michigan said it would no longer cover GLP-1 drugs to treat obesity in its fully insured commercial plans.
In addition to the 67% of employers surveyed by the business group who said they covered GLP-1 drugs to treat obesity in 2024, 3% said they would add coverage in 2025, and 13% said they were considering adding coverage in 2026 or 2027.
The vast majority of employers surveyed, 97%, said they covered GLP-1 drugs to treat diabetes.
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