The weight loss drug revolution is spurring rising health care costs among employers, who are expanding benefits to accommodate the types of health care their employees want.
The coverage of obesity drugs such as Ozempic and Wigoby among large companies (500 or more employees) rose from 41% last year to 44% this year. According to the new study HR consulting firm Mercer announced this week. Approximately 64% of businesses with 20,000 or more employees currently have this coverage, compared to 56% in 2023.
“Expanding health benefits can play an important role in attracting and retaining talent,” said Tracy Watts, Mercer’s national leader for U.S. health policy. luck. “While the rising cost of health care benefits is a challenge, ensuring employees receive quality care is paramount,” she points out.
Demand for these weight loss drugs is a major driver of increased spending by employers. According to the study, average healthcare costs per employee rose 4.5% to $16,501 this year, compared to $15,797 in 2023. Employer healthcare costs are also expected to increase by an additional 5.8% in 2025.
About 12% of adults reported having used some type of GLP-1 drug, a category that includes Ozemic, Wegovy, and others, according to a May report. study From the Kaiser Family Foundation, a nonprofit health policy research organization. Demand is likely to remain strong considering that approximately 40% of U.S. adults are considered obese, according to the Centers for Disease Control and Prevention.
Other medical specialties are also leading to increased healthcare spending for employers. Fertility treatments, including selective egg and sperm freezing, are becoming more common in workplace benefits packages, and are now offered by 64% of large employers with 500 or more employees. study Found it. Employers are also offering more specialized support to cancer patients. About two-thirds of large employers offer services such as case management, caregiver resources, and workplace support.
To control costs, employers are expanding their health plan options. Approximately 65% of large employers currently offer three or more health plans, including an exclusive provider organization (EPO) plan. This plan uses a closed provider network to keep costs down and is cheaper than traditional PPO options. Virtual primary care services are also gaining traction.
Watts recommends that companies work with pharmacy benefits managers to implement clinical management programs for patients, especially when it comes to controlling costs related to weight loss drugs. But you have to be careful about providing those options.
These drugs “have the potential to turn the tide on the obesity epidemic and positively impact downstream health care costs,” Watts said. Additionally, Watts said, “I am grateful to be part of an organization that prioritizes the well-being of all of its employees, even if they or their families may not personally need a specific specialized program or coverage.” he added.
