During the current open enrollment season, many employers are reducing or eliminating coverage for GLP-1 drugs, which are expensive, costing around $500 to $600 per month per user. A recent WTW survey revealed that 53% of employers with over 100 employees currently cover these drugs, down from 57% in 2025, marking the first decline in three years.
Additionally, 16% of employers are considering dropping coverage, up from 9% last year. This trend is driven by rising healthcare costs, with a Marsh survey predicting an 8.2% increase in health insurance costs per employee in 2027, partly attributed to GLP-1 usage.
Some companies are directing employees to purchase these medications through direct-to-consumer programs, while others are adopting direct-to-employer models that reimburse out-of-pocket costs. Employers are also exploring weight management programs through third-party vendors, which can be more cost-effective than GLP-1 coverage.
These programs often include coaching and support for lifestyle changes, with some showing promising results in weight maintenance. However, employee participation in these programs can be challenging. Overall, the shift away from GLP-1 coverage reflects a balancing act between managing costs and supporting employee health