Employers are already grappling with the challenge of balancing rising healthcare costs with overall workforce wellbeing. Now, the advent of GLP-1 medications, which have shown promising results in managing obesity and related chronic conditions, presents both an opportunity and a challenge. These medications could potentially reduce long-term healthcare expenditures but require a strategic approach to manage their initial high costs and integrate them effectively into employee health benefits.
More than a third of Americans have obesity – and it’s driving healthcare expenses higher every year. Obesity is a leading risk factor for diabetes, cancer, hypertension, depression, back pain and more.1 The use of GLP-1 medications has emerged in a crucial role for managing blood sugar levels and aiding in weight loss that may assist to reduce or mitigate those dealing with or considered at high risk for chronic conditions. Navigating this conundrum requires a strategic approach to balance costs and employee health benefits. This question is now front of mind for benefit leaders everywhere “How are you currently handling this issue in your organization?”
What’s a GLP-1 and why does it matter?
GLP-1, or Glucagon-like peptide-1, is a hormone that your small intestine produces. It plays several important roles in the body, including triggering insulin release from the pancreas, blocking glucagon secretion, and slowing stomach emptying. These functions help manage blood sugar levels and can aid in weight loss. Medications that contain GLP-1s include (Trulicity®), Exenatide (Byetta®), Semaglutide (Ozempic®/Wegovy®) and Tirzepatide (Mounjaro®/Zepbound®).
Rising demand for GLP-1 medications
Approximately 13% of U.S. adults have used a GLP-1 agonist medication and 79% of employers have seen an increased interest in GLP-1s among covered employees2. Additionally, while innovations like GLP-1s are in high demand and extremely effective, they also come with higher costs. What's the ROI?
If an employer has 10,000 covered lives and 6% are taking a drug it will cost the employer $7.2M per year. Do the health benefits outweigh the cost?
40%
of employers who cover GLP-1s for obesity, while most cover for diabetes. However, the high cost between $8-10K per patient annually, poses a challenge for employers.1
67%
employers who have expanded coverage for GLP-1s for obesity.2
20%
of employees that said they would stay at a job if they disliked if GLP-1 was offered.3
Planning an employer GLP-1 strategy
Many employers are considering whether they should choose to cover GLP-1s in their employee benefits plans.
To implement an effective GLP-1 strategy, employers can consider the following steps:
- Gate Coverage for GLP-1s
Require participation in lifestyle management programs and provide ongoing support to ensure the long-term success of GLP-1 treatments. Recognize the multifaceted impact of obesity on both physical and mental health. - Identify At-Risk Employees
Use traditional (assessments and screenings) and advanced (artificial intelligence) methods to pinpoint employees who may benefit from GLP-1 medications. - Select the Appropriate Solutions
Decide whether to provide digital solutions, such as apps, or a combination of digital tools and personalized support from dieticians, behavior coaches, or therapists. Explore Healthcare Navigation high touch support to assist the employee in alternative medications as well as promotion of programs to save both the employee and employer spend. - Measure Results
Track the adoption and effectiveness of the solutions by monitoring program utilization as well as health metrics such as weight loss, A1C levels, and other comorbidities risk trends.
By following these steps, employers can better manage healthcare costs and support the well-being of their employees.
Alight resources help employers balance rising healthcare costs
Alight offers a range of solutions to support employers in managing GLP-1 costs (as well as overall healthcare costs) and improve employee well-being.
- High tech and digital tools (Alight Well) – Prerequisites for GLP-1 program and incentive management.
- Healthcare Navigation - Address population health risks, guide employees to better outcomes, remove barriers to care, and claim and billing support.
- Program Engagement - optimize employee engagement through AI-powered 1:1 interactions, analytics, and digital tools like Alight Well and marketplace.
- Alight Worklife – supports full range of programs on the existing Alight Worklife platform.
- Alight Partner Network – high-touch solutions provide targeted GLP-1 programs with simplified contracting and plug-and-play integration.
Client stories of GLP-1 savings
Alight's Healthcare Navigation Solution generates substantial savings for GLP-1 medications and other prescriptions through comprehensive prescription and bill reviews. In 2024, 32% of the prescriptions reviewed were for GLP-1 medications, yielding an average savings of $2,117 per review.
$2,177
32% of the perscriptions we reviewed in 2024 were for GLP-1s.
The average savings per review was $2,117.
$11,217
in savings for an employee of a global hotel chain.
Member was prescribed brand name medication ($918.20 for a 30-day supply) and we recommended generic alternative ($46.10 for a 90-day supply) as an alternative option
$8,788
in savings for a public sector employee.
Member didn’t have an existing prescription, but the highest costing option was a brand name medication ($936 for a 30-day supply) and the lowest costing option was a generic alternative ($708 for a 90-day supply)
Alight supports employers in their GLP-1 strategy
At Alight, we understand the challenges employers face when deciding whether to cover GLP-1 medications, as well as supporting existing GLP-1 programs.
By leveraging Alight’s tools and expertise, organizations can not only save costs but also ensure that your employees receive the best possible benefits experience.
With the right partner and tools, employers can lead the way in supporting their employees' health and achieving cost-effective, positive outcomes. With over forty years of deep experience in employee benefits, Alight can guide HR professionals through this journey, equipped with the expertise and solutions needed for success.
Want to know more?
Alight can guide HR professionals through this journey, equipped with the expertise and solutions needed for success.
1 Center for Disease Control and Prevention.
2 HR Executive 2024
3 HR Executive February 2025
