Chicago, IL
Last month, the FDA officially ended the shortage designation for GLP-1 medications, including Ozempic and Wegovy.
“This decision changes the landscape for employer health plans,” said Rob Wilson, President of Employco USA. “Now that compounded versions are no longer permitted, employers are left with brand-name drugs that remain costly and often excluded from insurance coverage.”
Wilson notes that GLP-1 drugs now make up more than 10.5% of employer-sponsored drug claims. Coverage has also expanded, with 36% of employer plans now covering these medications for both diabetes and obesity, up from 26% in early 2024.
“To control costs, most plans require prior authorization, enforce BMI or medical criteria, and use step therapy and reauthorization,” Wilson said.
However, new research may soon change how these drugs are prescribed and covered. Wilson pointed to studies linking GLP-1 medications to reduced migraine symptoms, substance abuse treatment, and possible prevention of Alzheimer’s disease.
“These are off-label uses for now, but the data is growing. Clinical guidelines could shift in the next few years,” said Wilson.
He also warns that demand from employees is rising fast.
“One survey found that 70% of workers would stay in a job just for GLP-1 coverage, and 20% would leave their current role for it,” Wilson said. “Some employees now value access to these medications more than remote work flexibility.”
Navigating this new and evolving landscape will present unique challenges for HR departments, says the workplace analyst. Wilson can provide expert commentary on this topic and any other HR and employment topics.
