Why GLP-1s aren't lowering employers' costs

Employers have begun offering coverage for GLP-1 medications such as Ozempic and Zepbound in the hope that treating obesity will reduce future medical claims. The episode examines whether that expectation holds, drawing on reporting about one covered employee and analysis from a health economist who reviewed employer strategies.

The Appeal of Coverage and One Employee's Experience

Nick Miller, who weighed over 400 pounds, described constant preoccupation with food that eased within hours of his first dose. His employer's plan covers the medication, leaving him responsible for only $12.50 per month. To qualify, he had to participate in a structured program that required regular weigh-ins, food and exercise tracking, lab work, and clinician visits. The employer, which spent roughly $80 million on these drugs in one year, designed the program to direct coverage toward participants most likely to adhere and benefit. Participants in the program have lost up to 40 percent of body weight on average and shown reductions in markers linked to heart disease and diabetes.

The Economic Framework Behind Expected Savings