6 ways to offer weight loss benefits (including GLP-1s) to your employees

In the past few years, use of GLP-1 medications like Ozempic, Wegovy, and Zepbound for weight loss has skyrocketed.  From 2019 to 2023, the number of U.S. patients using a GLP-1 medication for non diabetes-related treatment grew by over 700%. As of 2024, 13% of U.S. adults have tried GLP-1 drugs. On one hand, this increase in GLP-1 use has had positive effects for people. On the other hand, it’s had steep financial consequences for employers and insurance carriers, as they’re often the ones carrying the costs of these specialty drugs.

As an employer, how do you decide if you should offer GLP-1 coverage for weight loss, and how do you offer it — or other weight loss support alternatives — if your insurance carrier won’t? Let’s take a look at what HR needs to know about GLP-1 drugs for weight loss, including coverage options, other weight loss benefits to consider, and more.

Do insurance carriers cover the cost of GLP-1s like Ozempic for weight loss?

The short answer: probably not. Most large insurance carriers like Kaiser Permanente and United Healthcare made announcements toward the end of 2024 that they would be adding strict provisions to GLP-1 coverage or completely removing GLP-1 coverage for weight loss (without a comorbidity like diabetes) from their plans. This has left many HR teams whose employees were counting on insurance coverage for this drug scrambling to find alternative options.

How can I help employees access affordable GLP-1s drugs?

GLP-1 medications can be life-changing for those using them, and HR teams across the country recognize that. As employers look to more personalized healthcare options for their employees, access to drugs like GLP-1s will play a big role in moving toward more creative benefits strategies. Here are a few options for employers to consider when trying to help ease the financial burden of GLP-1 drugs for their employees:

1. If you’re self-funded, consider covering the cost (or a portion of the cost)

If you’re self-funded, you have the flexibility to choose whether to cover the cost. Ultimately, it’s up to you to decide how much of an impact this coverage will have on your employees. Tactics like prior authorizations and lifetime maximums can help you control costs while still making these drugs available to your employees who need them. Another tip: Because some users have experienced negative side effects, limit the number of initial fills to avoid paying for doses your employee won’t end up taking.

If you’re not self-funded, consider having a funding strategy conversation before your next renewal — not just for GLP-1 drugs, but for the flexibility it could give you in creating a benefits plan that’s truly customized for your workforce.

2. Offer an HSA, FSA, or HRA

Oftentimes, weight loss drugs can be reimbursed by HSAs, FSAs, or HRAs if prescribed by a physician. While the cost-per-fill is still high, employees can at least use tax-advantaged accounts to ease the financial burden a little bit.

What are other weight loss benefits my company can provide?

At the end of the day, funding GLP-1 drugs may not be in the cards for your company. But, as evidenced by the rise in GLP-1 use, weight loss support is in high demand. Here are some other innovative ways your company can offer weight loss benefits for employees.

1. Get the most out of your carriers

Your insurance carriers want your employees to be healthy. The healthier your employees, the lower their healthcare costs. Because of this, many carriers offer incentive programs for employee health and wellness. This can come in the form of wellness credits when you offer wellness programs or rewards direct to your employees when they complete certain action items, like tracking steps or taking a health survey. The bottom line: Get the most out of your insurance carrier. Your benefits broker can (and should) help with this!

2. Offer wellness stipends

Offering a wellness stipend can be a low-cost, high-impact benefit to your employees, and they can use it on the wellness items that are best for their needs. Here at Nava, our employees get a quarterly wellness stipend they can use on anything from new running shoes to reimbursements for gym memberships. A wellness stipend can even serve as a way to offset costs for a GLP-1 prescription.

3. Invest in employee nutrition benefits

Nutrition benefits can come in many different forms — from access to a certified nutritionist to healthy snacks at work. As diet is a huge part of any weight loss program, giving your employees easy, cost-effective access to better nutrition can help them reach their goals. Bonus: Nutrition counseling is likely something that’s already covered in your health plan, so it’s just a matter of communicating it to your employees.

4. Provide access to wellness technology like Wellhub

Technology can be a powerful tool when it comes to employee wellness. Having easy, free (or discounted) access to virtual or studio classes can remove the barrier to entry for employees who may think classes are too expensive or have a hard time fitting them into their schedule. Tools like Wellhub (a Nava Preferred Partner!) give your employees the flexibility they need when it comes to fitting exercise into their schedules and budgets.

Should my company invest in GLP-1 coverage for employees?

So, your insurance doesn’t cover GLP-1s for weight loss without a comorbidity, but your employees want it. Should you make the investment? As you go into this decision, you should have all the facts, so let’s lay out some details.

Pros of investing in GLP-1 drug coverage for employees:

• Employee health and happiness: The positive effects of GLP-1 use for weight loss is undeniable.
• Reduction of related healthcare costs: A decrease in BMI has been shown to drastically reduce healthcare costs, resulting in lower costs for the employer.
• Recruiting and retention: Simply put, this is a benefit employees want. If you can swing it financially, it may be a tool you can leverage for employee recruiting and retention.

Cons of investing in GLP-1 drug coverage for employees:

• Cost: We won’t sugarcoat it. These drugs are expensive. The cost hovers right around $1,000 per dose, which adds up.
• Management: If you are self-funded and using tactics like prior authorizations and lifetime maximums, the management of that adds an additional complication to HR’s plate.

What’s next?

So, what’s next? What are the steps you can take to create an employee benefits strategy that’s customized to your workforce — and keeps budget in mind?

Keep an eye on how this recent change in coverage for GLP-1s affects renewals

This past year shocked the industry as renewals started coming in. The increases were staggering, and a big part of that is likely because of pharmacy costs. With this drop in coverage of GLPS-1s specifically for weight loss, we may see renewals even out a bit in the coming year. The financial aspect of renewals will affect your strategy, so keep an eye on how they’re playing out throughout the year.

Time to talk strategy with your broker

Your benefits broker should be a key player in this conversation. They can help you weigh the costs, the benefits, and the risks. If you’re ready to take the next step in personalizing healthcare to best fit your workforce, let’s chat.