American companies are reducing insurance coverage for weight loss drugs due to the increasing popularity of GLP-1 medications. About 30 million Americans use drugs like Ozempic and Mounjaro, and even with health insurance, the monthly costs for these medications can reach hundreds of dollars.
Reduction in Insurance Coverage
According to surveys, two-thirds of companies in the United States currently provide coverage for weight loss drugs, but 10 percent of them plan to eliminate this coverage in the coming year. These results come from a survey conducted by a business group of employers. Additionally, GLP-1 drugs have been identified as the largest factor driving up employer-sponsored health insurance costs next year.
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Some companies, including PepsiCo, have already taken steps to eliminate coverage for weight loss drugs. The company has stated that it will still cover weight loss medications for diabetic employees but has limited the coverage. In a letter sent to its employees, the company stated, "The costs of prescription weight loss drugs have become one of the fastest-growing expenses in PepsiCo's programs."
Impact on the Workforce
Health groups like Cigna and the Starbucks coffee chain have also reported that they have stopped coverage for GLP-1 drugs for weight loss. A spokesperson for Cigna stated, "With increased access and new options, we have decided to end GLP-1 coverage for weight loss. We remain committed to supporting the health of our employees through a range of weight management programs and resources."
Despite the reduction in drug coverage by some companies, others believe that investing in these medications is beneficial. For example, Brian Moynihan, CEO of Bank of America, told CNBC last month, "Investing in these drugs is a reasonable investment in the workforce." According to him, GLP-1 drugs account for about 13 percent of the company's health costs.
Moynihan added, "We spend about $250 million or more on GLP drugs, which has increased from zero four or five years ago. We are seeing a significant impact on our employees." Recent research indicates that GLP-1 drugs may lead to a reduction in employee sick days. Additionally, preliminary research has shown that these drugs may help increase individuals' lifespan, although more research is needed in this area.
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Source: independent.co.uk
