A recent survey by 9amHealth has revealed a significant trend in employee health benefits: employer-sponsored GLP-1 drug coverage is emerging as a pivotal factor in attracting and retaining top talent.
As the competitive landscape for skilled professionals intensifies, companies are re-evaluating their health benefits packages to include innovative treatments that go beyond traditional healthcare offerings.
GLP-1 receptor agonists, originally developed to treat type 2 diabetes, have garnered widespread attention for their benefits in weight management, but have also been approved to reduce the risk of kidney disease and cardiovascular events associated with heart disease.
The major GLP-1 players in the market currently include Novo Nordisk’s semaglutide products Ozempic and Wegovy, and Eli Lilly’s tirzepatide offerings Mounjaro and Zepbound.
According to 9amHealth’s survey, over half of Americans (54%) either use or are interested in using a GLP-1 medication, marking a 6% increase from last year.
When it comes to job decisions, an even larger percentage of employees (73%, compared to 67% last year) consider GLP-1 coverage a key factor in accepting or remaining in a position.
With an increasing number of employees looking to maintain overall health and wellness, the medications are now viewed as a desirable benefit — one that can potentially lower long-term health risks while enhancing quality of life.
Related: FDA Approves New Use for Ozempic to Reduce the Risks of Kidney Disease
In the US, over 100 million adults are affected by obesity, and it is projected that nearly 49% of the population will face the condition by 2030.
People with obesity — and especially those with severe obesity — incur annual medical costs that are between $1,800 and $3,097 higher than those of their healthy-weight counterparts.
Given this, it doesn’t come as a surprise that 9amHealth’s survey found that weight loss medications continue to rank among the top four job perks, alongside healthcare coverage, flexible working hours and company equity.
On the employer end, employer-sponsored coverage for the medications has surged dramatically from 30% to 63%.
Yet, for the 25% of employees who desire the benefit but lack access, affordability continues to be a significant barrier. Notably, 31% of these individuals indicated they would switch jobs to secure coverage, up from 21% the previous year.
Many job seekers are thus factoring the availability of GLP-1 drug coverage into their decisions about where to work.
In today’s competitive job market, comprehensive benefits packages that address both chronic conditions and overall wellness are becoming a key differentiator. Employers who proactively include such coverage can not only boost employee morale but also decrease turnover rates by addressing an often-overlooked aspect of modern healthcare.
9amHealth provides “specialized care” for cardiometabolic conditions, including weight health, diabetes and heart health.
By partnering with employers, health plans and pharmacy benefit managers (PBMs), the company offers personalized plans, virtual care, at-home lab tests and prescription medication for the chronic conditions outlined above, including delivery.
“GLP-1 medications are effective — not just for weight loss but for overall metabolic health. However, they work best when combined with lasting lifestyle changes,” said 9amHealth’s chief medical officer Dr. Avantika Waring.
“Our survey shows that exercise rates among GLP-1 users are declining, which raises concerns about long-term health outcomes. Employers and health plans must look beyond prescriptions and invest in comprehensive weight health solutions — otherwise, they risk paying for the medication without seeing the full health benefits.”
The high cost of GLP-1 medications poses a significant challenge amidst growing demand. With the obesity drug market expected to reach $150 billion by 2033, employers and health plans must develop strategies that balance cost-effectiveness with ensuring patient access, says 9amHealth.
At the same time, a recent survey by Omada of 2,000 primary care physicians found that 67% are concerned about the potential health risks when patients obtain GLP-1 prescriptions for weight loss through third-party telehealth companies.
Moreover, the high demand for GLP-1 drugs also led to shortages of the drugs over the past couple of years.
As a result, compounders began offering up compounded versions of the medications.
Medical spas, compounding pharmacies and telehealth companies like Hims & Hers that sell compounded GLP-1 drugs have come under criticism — with some even having faced lawsuits from Novo Nordisk and Eli Lilly — about the lack of stringent quality control and regulatory oversight that could expose patients to inconsistent dosages and unforeseen health risks.
However, just several days ago, the FDA declared that the Wegovy and Ozempic shortage is officially over.
That announcement led to a 25% drop in Hims & Hers stock as the FDA gave compounders until April/May to stop selling compounded versions of semaglutide. Despite this, the company is projecting its weight loss business to hit $725 million in 2025. Last year, it earned $1.48 billion in revenue, up 69% from $872 million in 2023.
If you want your company to be featured on Xtalks.com, please email [email protected].
Join or login to leave a comment
JOIN LOGIN