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Some employers to drop coverage of obesity drugs
Rising use of obesity drugs is pushing some large employers to reconsider coverage, health policy researchers said, as lower prices fail to offset demand.
Roughly 10% of employers plan to drop coverage for GLP-1 weight-loss drugs next year, citing persistent cost concerns despite price reductions for Novo Nordisk's Wegovy and Eli Lilly's Zepbound.
Rising employee demand for these medications keeps overall spending high, counteracting savings from lower drug prices for many corporate health plans. This volume surge offsets cost-reduction efforts.
A Mercer survey indicates 5% of large employers intend to drop coverage next year, while Cigna has already ceased covering these weight-loss treatments for its own staff.
Novo Nordisk launched a Wegovy pill in January, and Eli Lilly began testing discounted pricing models to manage rising usage volume. These strategies attempt to offset employer cost concerns.
Industry analysts anticipate continued GLP-1 market growth next year as more patients access these drugs, forcing health plans to balance benefit sustainability with rising employee demand.