Rising Costs and Coverage: U.S. Employers Adapt to Health Plan Challenges

In 2024, 44% of U.S. employers with 500+ employees are covering weight-loss drugs, rising from 2023. High costs have driven policy shifts, including adding authorization requirements. Employers have also increased fertility treatment coverage and expanded health plan options to manage costs. Mercer surveyed 2,194 U.S. employers on these trends.

According to a new Mercer survey, the percentage of U.S. employers with 500 or more employees that cover weight-loss drugs jumped to 44% in 2024, up from 41% in 2023. Employers are facing rising healthcare costs partly due to expensive obesity treatments such as Wegovy and Zepbound.

These costs have prompted employers to introduce access controls to ensure effective use. Additionally, coverage for fertility treatments, including in vitro fertilization, saw a rise, with 47% of large employers now offering such benefits, up from 45% last year.

To manage expenses, companies are exploring diverse health plans, with 65% of large employers providing three or more options. Some have adopted Exclusive Provider Organization plans, encouraging network adherence and minimizing out-of-pocket expenses for employees.

(With inputs from agencies.)