Employers interested in weight-loss solutions as new drugs become available

About 6 in 10 employers are uncertain whether the popularity of these medications will lead to changes in their workplace wellbeing programs.

The availability of an effective new class of medications to treat obesity raises a weighty question for employers. How do they balance promoting wellbeing in the workplace and potentially reducing insurance premiums with the prohibitively high cost of the new drugs?

Workplace obesity takes a financial toll on employers, from reduced productivity and increased absenteeism to serious health problems that can trigger higher insurance premiums. Twenty-two percent of U.S. employers now cover prescription drugs for weight loss, 45% pay for bariatric surgery and one-third offer some form of weight management program, according to the International Foundation of Employee Benefit Plans.

GLP-1s such as Ozempic and Wegovy are a class of medications that have been used to treat diabetes and now are being used to treat obesity and excess weight. Consumers’ experiences with GLP-1s are varied, with some eagerly awaiting a prescription for the touted “miracle weight-loss drug” and others unable or unwilling to begin weekly, and sometimes daily, injections costing upwards of $1,600 a month.

The emergence of GLP-1 weight-loss drugs has left employers at a crossroads. About 6 in 10 are uncertain whether the popularity of these medications will lead to changes in their workplace wellbeing programs, according to the 2023 Trends in Workplace Wellness Survey from EPIC Insurance Brokers & Consultants.

One option is an integrated weight-loss solution that addresses both lifestyle modifications and medication, where appropriate. When asked a hypothetical question about the potential availability of this type of weight-loss solution, nearly half of respondents said they are moderately or very likely to use an integrated approach to weight loss. Responses to questions on a range of issues indicated that employers are determined to work through the challenges to develop benefits packages that take care of their employees without busting the budget.

Related: Obesity is complicated: How best to cover, or not cover, the new weight loss drugs

“Wellness benefits prove to be a consistent challenge for employers,” said Erin Milliken, director of wellbeing and health management solutions for EPIC. “The good news is they aren’t giving up. They understand what’s at stake and the vital role they play in the holistic wellbeing of their employees. As more employers view wellness programs as tools to nurture community, boost morale and deliver mental, physical and financial support, we’ll undoubtedly see a transformation in these results.”