Glucagon-like peptide agonists (GLP-1) drugs were originally approved to help manage Type 2 diabetes (T2D) and are now also being prescribed and used for weight management. Cleveland Clinic describes GLP-1 agonists as a class of medications that mainly help manage blood sugar levels for people with T2D, but notes that due to the drugs’ satiety effect, they can often promote weight loss. Obesity is considered a chronic and complex disease, according to Cleveland Clinic, and some employers may be questioning whether they should cover these drugs for weight loss.
What’s the Big Deal with GLP-1 Drugs?
Global Market Insights 2024 report GLP-1 Receptor Agonist Market states that the GLP-1 market is expected to reach a market value of $55.7 billion dollars in 2032.
Sources such as Cleveland Clinic suggest that GLP-1 drugs help people lose weight, mainly by suppressing appetite and inducing “full” feelings.
However, GLP-1 drugs are far from cheap. A 2025 SHRM article estimates a month’s supply to cost between $1,000 and $1,500. This can create a serious challenge for employers considering funding them for weight loss, depending on the number of users within a covered population.
And cost is not the only concern. Research from National Library of Medicine in 2024 also suggests GLP-1 drugs are linked to adverse gastrointestinal events, including nausea, vomiting, delayed gastric emptying and pancreatitis. This is something that individuals and employers may want to consider before opting to use or fund GLP-1 drugs for weight loss.
The Current State of GLP-1 Drugs
2023 research from IQVIA has shown that demand for GLP-1 drugs has accelerated since early 2020, corresponding to the launches of Ozempic®, Wegovy® and Mounjaro® variations.
Knowledge of GLP-1s may have been previously limited to a population treating a chronic condition, but awareness is growing. Almost 60 percent of adults have said they have heard at least some about these drugs, according to a 2024 KFF Health Tracking Poll. And when it comes to prescriptions, a 2025 FAIR Health report shows the percentage of overweight or obese adults prescribed a GLP-1 jumped from 0.3 percent in 2019 to 2.05 percent in 2024 – an almost 587 percent increase.
This increased usage has created challenges for some people with T2D who have struggled to access certain GLP-1 drugs, as reported by NPR in 2024. Later in 2025, NPR reported that the popularity of GLP-1s has also led to counterfeit products making their way onto the mass market, prompting the Food and Drug Administration (FDA) to issue a warning about counterfeit Ozempic® to the public.
Funding GLP-1 Drugs for Weight Loss
So…what about weight loss?
Obesity is a major driver of US health care costs, totaling almost $173 billion annually, according to the CDC in 2024. Employers are also impacted by the financial implications of obesity. 2024 research from Nutrition & Diabetes outlined the economic impact of obesity related to excess medical costs, absenteeism, disability payments and workers’ compensation payments. Supporting employees through weight loss initiatives may be an effective way to reduce these costs. One 2017 study by John Hopkins Bloomberg School of Public Health suggested: “Helping an adult lose weight leads to significant cost savings at any age.”
Mayo Clinic research from 2025 suggests that losing weight may reduce the risk of T2D. Guidance from the Centers for Disease Control (CDC) published in 2024 also supports the correlation between weight loss and lowering risk for T2D. The CDC states that engaging with the National Diabetes Prevention Program can help lower a patient’s risk of developing T2D by up to 58 percent, or 71 percent for someone over 60.
The 2024 CDC numbers around national health care costs attributable to diabetes are staggering, making it the most expensive chronic condition in the U.S.:
$1 out of every $4 in U.S. health care costs are being spent on caring for people with diabetes.
$307 billion is spent annually on direct medical costs.
$106 billion is spent annually on reduced productivity.
For employers, focusing solely on medical costs misses a big part of the picture. And indirect costs from productivity losses are borne by the employer. The reverberating effect has had some employers considering coverage options for GLP-1 drugs for weight loss on the basis of maintaining a healthy and productive workforce.
The Employer Coverage Debate
The big topic of conversation for plan sponsors in this arena centers around covering injectable GLP-1 drugs for weight loss and how to manage the associated costs. As we approach the latest benefits season, many employers are likely contemplating whether to add or continue coverage for these drugs in the years to come. One of the biggest concerns for employers who are considering coverage may be the large potential market due to prevalence of obesity.
While covering these drugs may serve employees’ needs and potentially increase satisfaction with their employee benefits package – positives in the checklist – many employers hesitate to offer new coverage from a cost perspective alone. A 2025 article from SHRM reports a notable increase in the average representation of GLP-1 drugs used for weight loss in total annual claims for employers, increasing from 8.9 percent in 2024 to 10.5 percent in 2025. Overall, 36 percent of employers are providing GLP-1 coverage for both diabetes and weight loss (up from 34 percent in 2024).
While interest in this class of drugs is growing and the data helps paint a clearer picture, the high price tag remains. And there are more questions employers may be exploring with respect to covering GLP-1s for weight loss, such as:
What about coverage for diabetics who are taking the medication already?
Should discounts be provided for the elimination of comorbidities or for multiple medications associated with diabetes and obesity?
Will employees adhere to the medication for the long-haul?
Keep in mind that aside from GLP-1 drugs, comprehensive obesity care can include behavioral health therapy, medically managed weight loss programs, lower-cost weight loss medications and even surgery. Additionally, intensive support is typically required to ensure that members remain compliant with behavior changes for the long-term. Ultimately, these are decisions each employer must make based on its own employee population.
Understanding how employees take prescription drugs from a claims perspective is critical. It may be that taking GLP-1 drugs for weight loss is an effective intervention for some employees that will improve health outcomes and reduce costs. For others, it may be simply an expense that doesn’t meaningfully improve health or financial outcomes.
When making these types of decisions, it’s essential to take a holistic approach to addressing these healthcare trends as an organization.
Next Steps: Building Your Own Cost Management Strategy
GLP-1 use isn’t slowing down any time soon, as the research shows. What’s more, it crosses generations within the workforce. With the scope expanding and more employers increasing their total annual spend providing GLP-1 coverage, employers who can get ahead of the cost trend may find themselves in a more prepared position. One way to do that is by developing your own GLP-1 cost management strategy. This can include the following activities:
Analyzing your population data.
Setting clear goals for GLP-1 spend and/or usage.
Implementing targeted controls on GLP-1 coverage.
Establishing a timeline and success metrics.
Supporting employees with personalized guidance.
Benefitfocus knows every organization is unique, but with insights around GLP-1 usage by demographic and tips to mitigate costs and risks, organizations can set the foundation. Download our guide to Managing GLP-1 Costs and Supporting Optimal Health Outcomes for ideas on how to start building your own strategy now.
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