aprott/iStock via Getty Images The proportion of U.S. employers offering coverage for GLP-1 drugs for both diabetes and weight loss has sharply increased over the past six months amid new FDA approvals, a new survey conducted by the International Foundation of Employee Benefit Plans (IFEBP) indicates.
About 57% of employers provided GLP-1 coverage for diabetes only, while 34% offered coverage for both diabetes and weight loss, according to the survey conducted in May. In comparison, employer coverage for GLP-1s stood at 49% for diabetes and 26% for both diabetes and weight loss in 2023. Out of those offering coverage for diabetes, 19% are considering whether to expand their GLP-1 coverage for weight loss.
The survey also found that GLP-1 drugs used for weight loss represented an average of ~9% of total annual claims processed by employers in May 2024, up from ~7% in 2023. Two hundred seventy-nine employers contributed to the survey conducted between May 22 and May 29, 2024. Julie Stich, Vice President of Content at the International Foundation, says employers are reevaluating their coverage policies in response to various factors, such as new FDA approvals, rising demand, and public awareness.
Late last year, the FDA approved Eli Lilly’s ( NYSE: LLY ) diabetes therapy, Mounjaro, for weight loss. Its rival, Novo Nordisk’s ( NVO ) semaglutide, marketed as Ozempic for diabetes and Wegovy for obesity, was approved by the FDA in March to reduce major adverse cardiovascular eve.