Insights
November 19, 2025
GLP-1 receptor agonists have rapidly become a focal point in employer-sponsored health plans, thanks to their proven effectiveness in managing diabetes and obesity. While these medications have been available for nearly two decades, FDA approvals for weight loss is reshaping how employers approach coverage, particularly as demand skyrockets. This highlights the need for solutions that help employers balance demand with clinical benefit – in a thoughtful way.
Employers face complex decisions as they navigate coverage policies for these high-cost medications. Strategies range from limiting coverage duration and quantity, to requiring lifestyle modifications and shared accountability between employers and employees. Many are also exploring advanced primary care models and holistic approaches that combine pharmacotherapy with virtual coaching and wellness programs. As more data becomes available on GLP-1 utilization, benefits leaders may reconsider traditional obesity care paradigms, increase appropriate use and access, and focus on outcomes-based contracting. Ultimately, thoughtful coverage decisions can help employers support employee health while managing costs and maximizing the value of their health benefits investment.