U.S. employers covering weight-loss drugs could nearly double in 2024 - survey

Accolade

09/10/2023 19:41

Oct 9 (Reuters) - The number of U.S. employers who cover
obesity medications, including Wegovy from Novo Nordisk
 NOVOb.CO  that belongs to a class of GLP-1 drugs, could nearly
double next year, according to a survey.
    The survey of 502 employers by Accolade  ACCD.O , a company
that provides healthcare programs for employers, and research
firm Savanta said 43% of the employers it polled could cover
GLP-1 drugs in 2024 compared to 25% that cover them now.
    GLP-1s, short for glucagon-like peptide 1 agonists, are used
to treat type 2 diabetes and weight loss. 
    "For the 43% planning to offer coverage next year, we
recommend a physician-led approach that guides who should be
prescribed GLP-1 medications and how to make them part of a
holistic health management plan," Accolade Associate Chief
Medical Officer James Wantuck said.
    Nearly all the companies that are covering GLP-1 drugs plan
to keep covering them next year, according to the survey. 
    Employers that cover weight-loss drugs are facing a spike in
their healthcare costs because of the growing popularity of
Wegovy. 
    Sales of Novo Nordisk's Wegovy and its diabetes drug
Ozempic, both of which contain the active ingredient
semaglutide, have surged in the last year. Ozempic is being used
"off label" for weight loss as well. 
    Prescriptions of Eli Lilly's  LLY.N  Mounjaro, another GLP-1
diabetes drug that is expected to be approved for weight loss in
the United States this year, have soared too.
    Benefits consultant Aon  AON.N  said 1 percentage point of
the 8.5% increase in employer healthcare costs it predicted for
next year would be driven by employee take-up of weight-loss
drugs.   

 (Reporting by Leroy Leo in Bengaluru; Editing by Shinjini
Ganguli)
 ((Leroy.Dsouza@thomsonreuters.com ; https://twitter.com/LeroyLeo7;))