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A recent employee benefits survey sheds light on a notable uptick in the coverage of GLP-1 drugs by employers, particularly in the realms of diabetes and obesity.
Evidence of Expansion
The International Foundation of Employee Benefit Plans conducted a survey revealing a significant surge in employer coverage of GLP-1 medications. Comparing data from the most recent survey to that of six months prior, the findings are striking. The percentage of US employers providing coverage for GLP-1 drugs in the context of diabetes has surged to 57%, up from 49% in the previous survey. Additionally, coverage for these drugs concerning both diabetes and weight management has risen to 34%, marking a substantial increase from the 26% reported earlier.
Exploring Potential Growth
A noteworthy observation from the survey is that 19% of employers who currently cover GLP-1s for diabetes are contemplating extending this coverage to include weight management. Respondents noted that, on average, GLP-1 drugs accounted for 8.9% of their total annual claims, a notable progression from the 6.9% recorded in the past survey period.
Cost Management Strategies
Among the strategies employed by employers to manage costs associated with GLP-1 coverage, the survey highlighted that 85% heavily rely on utilization management techniques. These include prerequisites such as prior authorization and body mass index (BMI) and/or comorbidity requirements.
The insightful survey, carried out in late May 2024, garnered responses from 279 employers seeking to enhance their benefits offerings in response to evolving healthcare needs.
The dominant players in the US market for GLP-1 drugs are renowned pharmaceutical companies Novo Nordisk (NVO) and Eli Lilly (NYSE:LLY).
