How Much of Employers’ Annual Claims Do GLP-1 Drugs Account For?

As GLP-1 interest and coverage for weight loss rises, so do the percentage of annual claims the drugs represent.

The average representation of GLP-1 drugs used for weight loss in total annual claims for employers so far in 2025 is 10.5%, according to new data from the International Foundation of Employee Benefit Plans (IFEBP).

That’s a notable increase over the 2024 average of 8.9% and the 2023 average of 6.9%. Additionally, about 3 in 10 employers (29%) reported GLP-1 drug costs to be more than 15% of their annual claims. GLP-1 drugs were originally intended for treatment of type 2 diabetes, but have been surging over the past couple of years as a weight loss aid.

“GLP-1 claims have continued to rise, reflecting a sustained interest in these drugs as both a weight loss and diabetes treatment,” said Julie Stich, vice president of content at IFEBP. “Organizations are balancing the ongoing demand from employees for GLP-1 coverage for weight loss by continuing to explore feasibility through cost-control mechanisms.” 

Overall, more employers are covering GLP-1 drugs for obesity. In 2025, 36% of employers provide GLP-1 coverage for both diabetes and weight loss (up from 34% in 2024), while slightly fewer employers (55%) provide coverage for diabetes only, down from 57% in 2024. Meanwhile, of those currently offering GLP-1 drug coverage only for diabetes, 17% are considering offering the drugs for weight loss (down from 19% in 2024).

The new data paints a clearer picture of where employers are with the rising class of drugs and how much it’s costing them. While GLP-1 drugs are growing in popularity due to employee interest as well as the promise of health advantages, many organizations are still hesitant on coverage because of the high price tag — the injectable drugs typically cost between $1,000 and $1,500 a month.

Toolkit: Managing Health Care Costs

GLP-1s are indeed driving a historic rise in traditional drug spending, helping it outpace specialty drug spend for the first time, according to recent data from Evernorth, the health services division of insurer Cigna.  

The annual growth rate of spending for traditional drugs — medications used to treat common health problems such as infections, high cholesterol, and diabetes — soared from 2.1% in 2021 to 12.8% in 2024, according to Evernorth. By contrast, the annual growth rate for spending on specialty drugs — high-cost, complex medications typically used to treat chronic conditions — slowed over the past few years, going from 9.2% in 2020 to 5% in 2021 and 4.9% in 2024. Traditional drug spending surpassed specialty drug spending in 2023 after a dramatic rise between 2022 and 2023, according to Evernorth’s report — driven by the demand for and usage of GLP-1s.

Drugs targeting weight management accounted for about half of the 2024 increase in drug spend (46.8%), translating to 6.7% of total drug costs, according to Evernorth’s figures, which are based on data from roughly 28 million people with commercial insurance coverage. Among those weight loss drugs, GLP-1s were the “predominant driver,” the report said, with net trend jumping more than 200% in 2023.

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“Generally, most employers understand the need for weight loss medications to prevent diseases and comorbid conditions and know obesity can lead to heart disease, diabetes, and other complications,” said Nelly Rose, vice president of clinical pharmacy, prescription solutions, at NFP, a global benefits consultant and property and casualty insurance broker. “It’s not that employers don’t want to cover it. It’s a matter of the difficult decisions that some employers are facing due to the costs of covering GLP-1s, especially now that this class of drugs have overtaken the market.” 

Employers are embracing several tactics to hold down costs. Of those covering GLP-1 drugs, 78% of employers are using utilization management as a cost-control mechanism, according to the IFEBP. Out of those that use utilization management as a cost-control mechanism, 96% require prior authorization, 26% require reauthorization for refills, 14% use a physician-led approach, 5% limit prescribers by type, and 3% limit prescribers to a telehealth or virtual care vendor.

A significant number of employers (68%) also rely on eligibility requirements to control costs, including minimum body mass index (88%), obesity with one other chronic disease (60%), obesity and type 2 diabetes (34%), obesity with two or more other chronic diseases (24%), nutrition/dietary requirements (24%), and physical activity requirements (9%).