The burden loss drug revolution helps gasoline rising well being care prices amongst employers, who’re increasing their advantages to maintain up with the form of medical care that their staff need.
Protection for weight problems medication like Ozempic and Wegovy amongst giant corporations (with 500 or extra staff) rose to 44% this 12 months, up from 41% final 12 months, in keeping with a brand new examine from HR consulting firm Mercer launched this week. And round 64% of corporations with 20,000 staff or extra now cowl it, in comparison with 56% in 2023.
“Expanding health benefits can play a crucial role in attracting and retaining talent,” Tracy Watts, nationwide chief for U.S. well being coverage at Mercer, tells Fortune. “While the rising costs of health benefits pose challenges, ensuring employees have access to quality care is paramount,” she notes.
That demand for these weight reduction medication is the principle driver behind growing spending for employers. Common well being care price per worker elevated 4.5% this 12 months to $16,501, in comparison with $15,797 in 2023 to $16,501, in keeping with the examine. And employer well being care prices are anticipated to rise one other 5.8% in 2025.
About 12% of adults report having used some sort of GLP-1 drug, a class that features Ozemic and Wegovy, in keeping with a Could examine from the Kaiser Household Basis, a non-profit well being care coverage analysis institute. On condition that roughly 40% of adults within the U.S. are thought of overweight, in keeping with the Facilities for Illness Management and Prevention, the demand is more likely to keep sturdy.
Different specialised medical remedy can also be resulting in elevated employer spending on well being care. Fertility remedies, together with elective egg and sperm freezing, have gotten extra frequent in office advantages packages, and are actually provided by 64% of huge employers with greater than 500 staff, the examine discovered. Employers are additionally offering extra specialised assist to staff with most cancers; roughly two-thirds of huge employers supply some companies that embrace issues like case administration, caregiver sources and office assist.
To try to management prices, employers are increasing their portfolio of medical plan selections. Roughly 65% of huge employers now supply three or extra well being care plans, together with unique supplier group (EPO) plans, which use a closed supplier community to maintain prices down and are cheaper than conventional PPO choices. Digital main care companies are additionally gaining traction.
In terms of controlling prices round weight-loss drugs particularly, Watts recommends that corporations work with pharmacy profit managers to implement medical administration applications for sufferers. However they need to nonetheless take care to supply these choices.
These drugs “may turn the tide on the obesity epidemic and positively impact downstream medical costs,” mentioned Watts. She provides that “even if employees or their families do not personally need certain specialized programs or coverages, they appreciate being part of an organization that prioritizes the well-being of all employees,” says Watts
