A recent survey by the International Foundation of Employee Benefit Plans (IFEBP) reveals that only 36% of employers provide coverage for GLP-1 drugs for both diabetes and weight loss, unchanged from the previous year. Meanwhile, 60% cover these drugs solely for diabetes, reflecting a growing concern over the rising costs associated with these medications.
The survey indicates that the percentage of employers covering GLP-1s for other conditions, like obstructive sleep apnea and heart disease, stands at 45%. As the costs of GLP-1 drugs from companies like Eli Lilly and Novo Nordisk continue to rise—accounting for 11.4% of annual claims in 2026, up from 6.9% in 2023—employers are increasingly hesitant to expand coverage for weight loss.
Instead, many are encouraging employees to seek these medications through direct-to-consumer platforms or utilize their flexible spending accounts. While some employers are offering alternative health benefits, such as disease management and nutritional counseling, the lack of evidence showing that GLP-1 coverage leads to overall cost savings is a significant barrier to broader adoption.
Currently, only 9% of employers are considering adding coverage for obesity treatments, and the situation may evolve as new data from Medicare's coverage of GLP-1s for obesity becomes available