Once considered a niche treatment for diabetes, GLP-1 medications are rapidly reshaping how employers think about weight management, chronic disease, and the future of employer-sponsored health benefits. A recent CHRO Association webinar explored why these drugs have gained such momentum—and how organizations are navigating the complex tradeoffs between access, affordability, and long-term sustainability.
Our panelists highlighted why GLP-1 coverage decisions are among the most challenging benefit questions employers face today.
Complex factors at play: Mr. Fronstin highlighted the many variables that complicate forecasting the impact of GLP-1 coverage, including drug pricing, eligibility criteria, adherence, duration of use, and cost-sharing design.
- While increased competition, potential oral alternatives, and political pressure on PBMs may help moderate costs over time, utilization is expected to rise as clinical guidelines expand eligibility.
Third-party partnership approach: One company described how cost trends prompted a shift away from treating GLP-1s as a standalone benefit.
- They implemented a two-step process requiring engagement with a third-party health partner before prescribing for weight loss, pairing medication with behavioral, nutritional, and lifestyle support to drive more sustainable outcomes and better insight into utilization and adherence.
Pull-back in coverage: By contrast, another company concluded that GLP-1 coverage for weight loss was not sustainable after evaluating options such as tighter eligibility, premium changes, and formulary adjustments.
- Instead, they redirected investment toward broader weight management, dietary, exercise, and chronic disease programs, while continuing to assess coverage for other clinical indications.
The need for more data. Despite taking different paths, panelists agreed on what comes next: better data is a game changer. Employers are moving beyond retrospective claims analysis toward real-time insights into initiation, adherence, and outcomes—enabling more proactive decision-making.
- Still, balancing short- and long-term health outcomes with costs remains challenging, even as emerging research from Aon suggests that consistent GLP-1 use may be associated with lower medical cost growth and fewer cardiovascular-related hospitalizations.
Session Resources
In addition to the documents below, you can find Aon's second-phase GLP-1 study insights here.
The rapid growth in usage of glucagon-like peptide (GLP-1) drugs — initially developed for diabetes but now widely used for weight management — is reshaping employment-based health benefits. As these medications are increasingly prescribed to individuals with obesity, and even to those who are overweight without comorbidities, employers are grappling with how to manage access and costs. While the clinical promise of GLP-1s is expanding, their high price point and growing demand have raised concerns about their impact on premiums.
This overview summarizes key findings from Aon’s workforce-focused GLP-1 research analysis, which examines claims data from over 50 million commercially insured lives, including over 139,000 prescribed users of second-generation GLP-1s from 2022-2024.
GLP-1 medications are transforming obesity and diabetes care — and employer healthcare costs along the way. Unpack the data, trends, and considerations behind the decision to cover or limit access. Learn how leading employers are balancing clinical value, cost containment, and employee wellbeing in one of healthcare’s hottest debates.
