Weight loss drug sales to increase by 2024 at major US companies, study reveals

About 44% of U.S. employers with 500 or more employees will cover weight-loss drugs by 2024, up from 41% by 2023, according to a study by communications firm Mercer released Wednesday.

Mercer also said that 64% of American employers with more than 20,000 employees will prescribe weight loss drugs by 2024, compared to 56% last year.

That includes the new effective GLP-1 drugs Wegovy from Novo Nordisk and Eli Lilly’s Zepbound that have been shown in trials to reduce weight by 15% to 20%, as well as older drugs in the class that promote weight loss, such as. Novo’s Saxenda.

Obesity drugs have increased costs for employers this year and contributed to increases in overall health care benefit costs, the survey found, prompting changes in how patients access drugs.

“Costs are clearly a concern, and employers are adding approval requirements to ensure that drugs are used by members who will benefit the most,” said Tracy Watts, Mercer’s national leader of US health policy.

That includes clinical coordination, or patient care management by pharmacy benefit managers and insurers, the report said.

Only about 24.4 million Americans receive GLP-1 drugs through commercial health plans, Reuters reported Monday. Mercer’s survey question referred to weight loss medications of any drug group.

Companies with more than 500 employees also increased the provision of fertility treatment, with 47% paying for in vitro fertilization, where the egg is fertilized outside the uterus, from 45% in 2023.

For those that offer self-insured health plans, or plans where employers pay the full premiums for an employee, the annual cost per employee rose 5% from 2023 to $16,501.

A Mercer report released in September found that employers expected a 5.8% increase in health insurance costs, even after implementing cost-cutting measures.

To try to reduce costs, employers have expanded health plan options and focused on those with metrics that compare patient outcomes to costs, the report said.

About 65% of large employers will offer three or more health plan options by 2024. Employers with more than 20,000 employees offered an average of five medical plans, Mercer said.

About one-third of large employers offer a health plan that limits patients to providers within their network. One-third of those plans require no deductible.

An estimated 87% of Americans will be enrolled in a health plan by 2024, according to KFF research.

Mercer’s survey includes 2,194 US employers ranging from those with 500 to more than 20,000 employees.

-Amina Niasse, Reuters