Could Firms Develop an Appetite for Weight-Loss Drugs?

It’s the drug that is literally transforming people across the world, but it comes with the kind of financial costs that keep CFOs up at night. Now comes word that GLP-1’s high price could have a flip side.

In a new study on GLP-1s, the insurer Aon found that the drug—despite its heavy upfront costs in treating diabetes, obesity and other health issues—could actually lower healthcare costs down the road. But the lower costs, including a 6% percent drop for diabetes patients and a 3% drop for weight-loss patients, only affected those who used the drug for 12 to 30 months. “There’s a spike in cost, but the fact that there’s some net gain over time is a really positive thing,” says Greg Button, president of global healthcare services at Korn Ferry.

To be sure, not all companies are bearing the medication’s costs of about $12,000 to $15,000 per patient a year. Still, a growing number of their insurance firms have started covering some of the bill for workers with certain health conditions. Indeed, estimates put 2025 US GLP-1 spending at over $60 billion, up from $13 billion in 2018. In all, GLP-1 prescriptions are on track to increase premiums for employer-provided health insurance by as much as 14%, according to a late-2025 analysis by BCBS.

But based on the Aon study, many firms would miss out on the 12- to 30-month cost savings because patients who have lost weight on a GLP-1 may no longer meet some insurers’ clinical criteria for continued coverage. Many workers will have to either pay out of pocket, or stop taking the drug and potentially experience their prior health issues again. In the Aon study, much of the cost savings came from decreases in major illnesses such as cardiovascular events or cancer—but only after extended use. “The question is, where do you draw the line for what is covered and not covered?” says Ron Seifert, North America workforce reward and benefits leader at Korn Ferry.

To be sure, it’s early days for GLP-1 cost data, particularly as it relates to side effects. For example, GLP-1s have been associated with dry mouth and teeth grinding (aka bruxism), both of which could potentially cause long-term dental-care costs to skyrocket. Or not. “We really don’t know long-term side effects, and it’s too early to tell,” says Button. And that first year of treatment is a lot to swallow. But Aon’s study is particularly appealing to firms, given that GLP-1 injection costs are likely to drop: In January, Novo Nordisk released Wegovy in pill form in the US for $149 to $299 per month—a fraction of the price of injections.

Aon’s data suggests that firms need to pay close attention to patients’ reasons for taking the medications, as well as their compliance. Those with at least 80% adherence showed big cost gains: Those with diabetes had a 9% improvement in health spend compared to the control group, while those seeking weight loss had a 7% improvement. This suggests that it could be effective for firms to incorporate weight-loss drug compliance into employee-wellness programs. At this stage, the outcome of any corporate action is likely to be an educated guess at best. “The challenge of GLP-1s is that we don’t have twenty years of clinical data, so most employee-benefit plans will be reticent, from a newness perspective,” says David Vied, global sector leader for medical devices and diagnostics at Korn Ferry.

Experts advise that firms double down on health programs that encourage exercise, mental well-being, and maintaining a healthy weight—all well-known pieces of the puzzle that have taken on new importance for GLP-1 users. “Organizations that are really embracing this are reintroducing wellness programs, and wrapping this around them,” says Button.

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