US Employers to Trim Obesity Drug Coverage Amid Rising Demand

Some U.S. employers plan to stop covering GLP-1 obesity medications, like Wegovy and Zepbound, in 2027 due to increased usage. Despite the drugs' lower prices, around 10% of employers may cancel such coverage, as indicated by the Business Group on Health's research on large employers.

As the obesity drug market expands, some U.S. employers are considering dropping coverage for certain medications next year. The increasing uptake of GLP-1 obesity drugs, such as Wegovy and Zepbound, has led to this shift despite reduced prices for these treatments.

The Business Group on Health, which conducts policy research for major employers, found that about 10% of those currently covering weight-loss drugs are contemplating discontinuation by 2027. The rising demand for these drugs seems to outweigh the benefits of recent price reductions.

This move by employers is expected to counteract some savings, indicating a complicated landscape for drug coverage amid fluctuating healthcare costs.