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Expanding Employer Coverage of GLP-1 Drugs for Obesity
In 2024, a survey by Mercer revealed that 44% of large employers now offer coverage for GLP-1 medications to treat obesity, up from 41% the previous year. These medications, traditionally covered for diabetes, are gaining traction as tools to fight obesity and associated health costs.
Impact on Healthcare Costs
The growing use of GLP-1 drugs is driving up pharmacy benefits, contributing to a 5% rise in average employer-sponsored health insurance costs to $16,501 per employee in 2024. Projections indicate a continued 6% increase in 2025, highlighting the pressure of escalating prescription drug prices on healthcare affordability.
Managing Healthcare Costs
Strategies to manage these costs include expanding coverages thoughtfully, with additional authorization requirements to ensure appropriate usage. Ed Lehman of Mercer notes the dual effort of managing expenses while enhancing employee benefits to support well-being. Employers are cautiously evaluating GLP-1 coverage, with potential steps like limiting access based on BMI or chronic conditions.
Future Predictions and Trends
Looking forward, there's a potential shift as GLP-1 drugs might become a norm in obesity treatment, reflecting broader trends of tackling chronic health issues through innovative healthcare solutions. This could signal a significant shift in addressing the obesity epidemic, with an eye on reducing long-term medical costs.
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