By Moselaunch 
Exploring the Impacts of Expanding Coverage on Healthcare and Costs
In a significant shift toward addressing obesity, more U.S. employers are offering coverage for weight-loss drugs in their healthcare plans. According to a recent survey by consulting firm Mercer, 44% of employers with 500 or more employees are covering weight-loss medications in 2024, a modest increase from 41% in 2023. Among larger companies, with over 20,000 employees, the jump is even more notable, rising to 64% from 56% the previous year.
The Role of GLP-1 Drugs in Weight Management
This increase in coverage includes access to highly effective GLP-1 drugs, such as Wegovy by Novo Nordisk and Zepbound by Eli Lilly. These medications have demonstrated impressive results in clinical trials, aiding weight reduction of 15% to 20%. In contrast, older medications in the same class, like Novo Nordisk’s Saxenda, offer comparatively modest results.
The growing inclusion of these drugs reflects a broader commitment by employers to improve healthcare outcomes. However, it also contributes to rising healthcare costs, prompting companies to implement stricter access measures.
Managing Costs Amid Growing Demand
Obesity drugs are reshaping the financial landscape of healthcare benefits. Tracy Watts, Mercer’s national leader for U.S. health policy, noted that cost concerns have led employers to introduce authorization requirements. These measures aim to ensure that only patients most likely to benefit from the medications gain access. This approach includes clinical coordination, often overseen by pharmacy benefit managers and insurers, to manage patient care efficiently.
Despite these efforts, costs continue to rise. The annual healthcare expense for a single employee increased by 5% in 2024 to $16,501. Mercer’s earlier report projected an even steeper rise of 5.8%, highlighting the financial strain despite cost-reduction strategies.
Expanding Health Plan Options
To address rising costs, many employers are diversifying their health plan offerings. About 65% of large companies now provide three or more plan choices, with firms employing over 20,000 workers offering an average of five medical plans. Among these, Exclusive Provider Organization (EPO) plans are becoming increasingly popular. These plans limit coverage to in-network providers but often waive deductibles, appealing to cost-conscious employees.
However, deductibles remain prevalent in most plans, with 87% of Americans enrolled in health plans requiring one in 2024, according to a KFF survey.
Broader Healthcare Benefits
The survey also highlighted increased coverage for fertility treatments. In vitro fertilization (IVF) coverage rose to 47% among employers with over 500 employees, compared to 45% in 2023. This expansion aligns with a growing emphasis on offering comprehensive healthcare benefits to attract and retain talent.
Mercer’s survey, covering 2,194 employers ranging from 50 to over 20,000 employees, underscores the evolving priorities in employer-sponsored healthcare plans. While cost management remains a pressing challenge, the shift toward inclusive and effective healthcare solutions marks a significant step forward.