Rising Coverage for Weight-Loss Drugs Among U.S. Employers in 2024

In 2024, the percentage of U.S. employers covering weight-loss drugs has increased, with notable rises among larger employers. The trend, partly driven by new GLP-1 drugs, is influencing healthcare costs and accessibility. Fertility treatment coverage has also expanded. Employers are adapting health plans to manage rising healthcare expenses.

The percentage of U.S. employers covering weight-loss drugs has risen in 2024, particularly among larger companies. According to a Mercer survey released Wednesday, 44% of U.S. employers with 500 or more employees now cover these medications, up from 41% in 2023. This increase is more pronounced in employers with over 20,000 employees, where coverage has jumped from 56% to 64%.

Among the covered medications are newer GLP-1 drugs like Wegovy from Novo Nordisk and Eli Lilly's Zepbound, known for significant weight loss results. However, rising costs associated with these drugs have led to increased healthcare benefit expenses for employers. Companies are implementing authorization requirements and clinical coordination to ensure the effective use of these medications.

Fertility treatment coverage has also seen changes, with a slight increase in companies covering in vitro fertilization. Mercer indicates that this rising trend in healthcare expenses, exacerbated by obesity drugs, has prompted employers to diversify health plan options, often focusing on outcomes versus costs to mitigate financial impacts.

(With inputs from agencies.)