Weight Loss Drugs Increasing Employer Healthcare Costs: A 2025 Outlook

Weight Loss Drugs Increasing Employer Healthcare Costs: A 2025 Outlook

In a significant consideration for business leaders, new survey data indicates that increased spending on prescription drugs, specifically weight loss medications, is a key factor driving an anticipated 8% hike in employer healthcare costs for 2025. The findings come from the Business Group on Health’s 2025 Employer Health Care Strategy Survey, which reflects the ongoing changes in the healthcare financing landscape.

Rising Pharmacy Costs Impacting Employers

According to the survey, employers are increasingly concerned about rising pharmacy costs, with 76% expressing they are “very concerned.” Over the past two years, the proportion of health care expenditures dedicated to pharmacy has surged from 21% in 2021 to 27% in 2023. This notable increase raises alarms amid a growing movement toward providing comprehensive health benefits that include emerging obesity treatments.

The survey reveals a striking trend among employers: 79% of the 125 organizations surveyed reported a notable uptick in interest among employees for obesity medications, particularly GLP-1 drugs like semaglutide and liraglutide. Traditionally, these medications were primarily prescribed for diabetes management, yet their eligibility has widened, now covering treatment for obesity at 67% of employers as of 2024 and cardiac conditions at 34%.

Ellen Kelsay, president and CEO of the Business Group on Health, underscored that the current environment compels employers to rethink their healthcare strategy. "Employers are steadfast in their desire to provide comprehensive offerings to their workforces," said Kelsay. She emphasized that organizations are absorbing much of the escalating costs and are focused on improving health outcomes and employee experiences. Nevertheless, the financial landscape pushes them toward seeking transformative partners committed to achieving meaningful change.

The Intersection of Healthcare and Business Strategy

This shift in medication utilization aligns with broader trends in the healthcare sector, where innovations in treatment options are being met with escalated costs. As more employers consider these weight loss drugs part of their healthcare coverage, the overall financial implications can be substantial. The demands on healthcare budgets push employers to think critically about their pharmacy benefit management.

The Business Group on Health's survey results point to a pivotal moment in health benefits management. As employers wrestle with budgeting these new treatments, the conversation is shifting toward value-based care models that emphasize not only the treatment outcomes but also the cost-effectiveness of drug therapies.

In addition, the rising prevalence of obesity among the U.S. population — now estimated to affect around 42% of adults — has intensified the focus on weight loss medications as a viable solution for both employers and employees seeking better health outcomes. As awareness of obesity-related health risks increases, organizations may find that investing in obesity treatments can potentially lower long-term healthcare expenses.

According to the Centers for Disease Control and Prevention (CDC), obesity-related conditions such as type 2 diabetes, heart disease, and certain types of cancer are responsible for an estimated $147 billion in annual healthcare costs in the U.S. Confronting this reality, employers who incorporate weight loss medications into their health plans could potentially mitigate these long-term risks and associated costs.

To view the full survey results, including additional statistical breakdowns, visit the Business Group on Health website.

This evolving landscape presents both a challenge and an opportunity for employers looking to provide comprehensive healthcare while managing costs. As organizations grapple with the implications of rising prescription drug costs, the path forward will likely include a close examination of healthcare spending and a heightened focus on preventive care strategies.