As employee benefits continue to evolve, a new trend is gaining traction across corporate America—coverage for GLP-1 medications like Ozempic, Wegovy, and Zepbound. Originally designed to treat type 2 diabetes, these medications have surged in popularity for their powerful weight-loss effects, transforming how companies view employee health benefits and how workers assess job opportunities.
GLP-1 Drugs: From Diabetes Treatment to Talent Magnet
Ozempic (semaglutide) and its counterparts have become household names for their dual role in managing blood sugar and promoting weight loss. But with monthly costs around $1,350 for medications like Wegovy, many employees can’t afford them without insurance. As a result, workers are increasingly turning to their employers for help covering these high-cost drugs.
The demand is reshaping the benefits landscape. According to a 9amHealth survey, 54% of Americans either use or want to use a GLP-1 medication—a 6% increase year-over-year. Moreover, 73% of employees say coverage for GLP-1 drugs is important when considering a job offer, and nearly a third would switch employers to gain access.
Why Employers Are Taking Notice
Companies are starting to respond. A Mercer study reveals that 44% of businesses with 500+ employees now offer GLP-1 drug coverage, rising to 64% among employers with over 20,000 workers. These organizations are weighing the short-term costs against the potential long-term savings.
However, the financial implications are real. GLP-1 medications now account for nearly 9% of total annual health claims, up from 6.9%, with almost half of employers reporting these drugs make up more than 10% of all claims. Major healthcare providers like Blue Cross Blue Shield of Massachusetts and UPMC Pittsburgh reported significant financial losses in 2024, partly due to soaring pharmacy expenses tied to GLP-1 demand.
The Case for Long-Term ROI
Obesity currently affects over 100 million adults in the U.S., with nearly half the population projected to fall into that category by 2030. Research shows employers spend $1,800 to $3,100 more annually in medical costs for employees with obesity compared to their healthy-weight peers. Offering GLP-1 coverage could help reverse that trend, reducing healthcare expenses over time while improving employee well-being.
Strategic Coverage: Balancing Access and Cost
To manage expenses, some employers are implementing coverage limits, including lifetime caps, BMI thresholds, and prior authorization requirements. Many also require employees to try lifestyle interventions—such as diet and exercise—before turning to medication. These strategies aim to ensure GLP-1 benefits go to those who need them most while minimizing waste.
Employee Impact: Cost and Risk Without Coverage
For employees whose workplaces don’t offer GLP-1 coverage, the financial strain can be intense. The 9amHealth survey found that 59% of workers are cutting back on essentials—groceries, dining out, and discretionary spending—to afford medications. Alarmingly, 37% have turned to unregulated, non-FDA-approved alternatives, increasing the risk of dangerous side effects due to improper medical oversight.
Looking Ahead: A Growing Trend in Corporate Benefits
Among large companies that don’t yet cover GLP-1 medications, about 25% are considering it within the next year. Several forces could accelerate this trend: a tight labor market, growing employee demand, and the eventual arrival of generics. Although semaglutide won’t go generic until around 2030, drugmaker Novo Nordisk is investing $4.1 billion to expand manufacturing, a move that could help lower prices over time.
Conclusion: Ozempic as a Talent Strategy
With more employees willing to change jobs for GLP-1 coverage, companies can no longer ignore the conversation. Offering access to weight-loss medications like Ozempic can serve as a powerful recruiting and retention tool—especially when combined with comprehensive wellness programs. The most forward-thinking employers will adopt a balanced approach, pairing GLP-1 coverage with education and lifestyle support to foster healthier, more productive teams while managing long-term healthcare costs.
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