Case Study: GLP-1 Cost Effectiveness and Coverage for Employer-Sponsored Health Plans

04/12/2024 Written by: Tom Rosenbaum

GLP-1 receptor agonists, or GLP-1 RAs, are changing the game for people living with Type 2 diabetes and obesity. These powerful medications, such as Ozempic, Trulicity, and Wegovy, not only help manage blood sugar levels but have also shown significant benefits in weight loss. However, due to their high cost and increasing demand, health plans and employers are facing challenges in providing coverage for these drugs.

Employer-sponsored health plans can expect a significant increase in claims expenses for GLP-1 drugs. For example, a company with 1,000 employees could spend around $600,000 in 2024. While GLP-1 drugs offer undeniable health benefits, including reduced rates of heart-related issues and a decrease in BMI, the financial strain on payers and the necessity of patient adherence to treatment plans underscore the complexity of incorporating these drugs into healthcare coverage.

Download our recent case study to gain a deeper understanding of GLP-1 receptor agonists and their impact on health plan coverage. It provides a detailed analysis of cost and utilization trends and the steps employers can take to manage this growing expense while supporting their employees' health.

Ready to Learn More?

What is the true future risk? Download our case study to better understand GLP-1 receptor agonists and their impact on health plan coverage.

Unlocking-Value-in-MA-The-Power-of-Strategic-Employee-Benefits-Due-Diligence
Unlocking Value in M&A: The Power of Strategic Employee Benefits Due Diligence
Blog02/19/2025
mergers-acquisitions-insurance

When we think about mergers and acquisitions, the focus often lands on financials, valuations, and synergies. But behind the scenes, some of the most impactful work in an M&A transaction happens in...

Rising-Claims-Severity-Challenges-Sustainability-of-Low-RWI-Insurance-Rates
Rising Claims Severity Challenges Sustainability of Low RWI Insurance Rates
Blog12/11/2024
mergers-acquisitions-insurance

While rates for Representations and Warranties Insurance (RWI) have remained at industry-all-time lows over the course of 2024, the incidence of claims has remained at similar levels compared to...

How-Longer-Private-Equity-Holding-Periods-May-Lower-Your-Insurance-Expense
How Longer Private Equity Holding Periods May Lower Your Insurance Expense
Blog11/06/2024
mergers-acquisitions-insurance

The combination of market uncertainty, elevated interest rates, and persistently high valuation multiples can have the effect of extending an investment’s holding period. The average holding period...