Weight-loss drugs are booming (1) and you’ve probably heard of them: Wegovy, Ozempic, Mounjaro, Zepbound. These GLP-1 medications are helping Americans slim down and manage diabetes — and in some cases, employers are even footing part of the bill.
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But how much longer can they bear the cost?
The latest Employer Health Benefits Survey from KFF (2), a non-profit health policy research organization, found the number of very large firms (more than 5,000 employees) covering weight-loss drugs jumped from 28% to 43% this year.
Only 16% of smaller firms (200-999 employers) covered the medication.
While typical medication for type 2 diabetes is often covered, weight-loss drugs are a separate cost and they aren’t cheap: A month’s supply of GLP-1 medications can average around $700-$800 (3). And as out-of-pocket access is limited by high prices, more and more Americans may be turning to employers to cover some of the costs.
Employers want to keep weight-loss medications as a benefit to attract quality employees, but the projected costs for the drugs are making firms wary.
How are employers dealing with the cost?
As more workers are taking advantage of the drug benefit, the cost burden on employers is increasing. Two-thirds of respondents to the KFF survey said GLP-1 drugs had a “significant” impact on their overall prescription benefit spending.
Those rising expenses may push some employers to pull back on GLP-1 coverage or add new restrictions. Nearly half of big companies admit these drugs matter to their workers, yet just 1% of those not already offering coverage expect to start next year, the KFF said.
“Large employers know these new high-priced weight-loss drugs are an important benefit for their workers, but their costs often exceed their expectations,” said Gary Claxton, KFF senior vice president. “It’s not a surprise that some are rethinking access to the drugs for weight-loss.”
In response to the rising prices, employers may be considering tightening up eligibility requirements for weight-loss drugs, like increasing the BMI threshold or requiring employees to be enrolled in weight-management programs.
Other firms are considering dropping the benefit altogether, as 2026 cost projections rise (4) or as overall benefits coverage has increased as a result of GLP-1 offerings, increasing rates of cancer (5) and other disease diagnoses and even tariffs (6).
“There is a quiet alarm bell going off,” Drew Altman, KFF’s CEO, said in a statement (7). “Employers have nothing new in their arsenal that can address most of the drivers of their cost increases and that could well result in an increase in deductibles and other forms of employee cost sharing again, a strategy that neither employers nor employees like but companies resort to in a pinch to hold down premium increases.”
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How to make the most of your health benefits
With employer health insurance bills rising — costing families an average of nearly $27,000 a year (8) — it’s fair to wonder if the average employer plan is a real benefit. In fact, KFF found that working-age Americans who are on employer-based insurance plans in 2026 will see the steepest cost increases since 2010.
Would switching to a government-funded plan or just paying out of pocket be a better choice?
Employer coverage is still a better option for covering medical costs, especially if you take GLP-1s (9).
With employer coverage, you have access to lower negotiated drug prices on those weight-loss drugs. Plus, on the rest of your medical expenses, you only have to pay an annual out-of-pocket maximum, which is especially helpful for covering your spouse and children.
There are ways to optimize your health plan to save the most money.
To understand the costs of your weight-loss drugs under your employer plan, find out what tier the drug is in. Your employer may cover generic brands at a low cost, or it may cover preferred or specialty brands with copays. Consider switching to a generic GLP-1 if that saves the most money; generic or compounded GLP-1s (10) are becoming options under some plans.
When comparing health plans, look beyond the monthly premium. Consider the total annual cost, what the coverage includes, the share of premiums deducted from your paycheck, your expected out-of-pocket spending on copays and deductibles and any manufacturer assistance or prescription discounts you use (11).
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Markets And Markets (1); KFF (2; 7); UChicago Medicine (3); CNN (4; 5); American Hospital Associates (6); USA Today (8); Medical Mutual (9); The Aedition (10); US Pharmacist (11)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.