President Donald Trump recently said that he has struck a deal with drugmakers Eli Lilly and Novo Nordisk to lower the costs of the popular but expensive GLP-1 drugs Wegovy and Zepbound — a move that could expand the usage of the weight loss drugs and ultimately affect employers.
The new deal could significantly lower the monthly out-of-pocket costs of the drugs to between $50 and $350 from their current price tag of $1,000 or more. The deal lowers the price for certain Medicare and Medicaid patients, as well as individuals who purchase prescription drugs directly through the TrumpRx website, the government’s discount platform for buying prescription drugs with cash.
While the deal does not mandate changes for employers, it has the potential to influence future negotiations and benefit offerings due to shifts in the broader drug market and public expectations, experts said.
"Employers should be prepared to budget for the increase in drug spend as the more people who take the medication, the more likely [it is that] costs will increase," said Louis Zollo, national pharmacy practice leader and vice president at Segal.
The new deal on GLP-1 drug costs is just one trending topic in the total rewards space. Here's a look at other recent compensation and benefits news.
How Employers Can Get a Handle on a 'Difficult' Renewal Season
As U.S. employers head into 2026, many are preparing for one of the most difficult health care renewal seasons in recent memory.
"It's shaping up to be a uniquely difficult year in terms of renewal increases," Bryan Davis, national practice leader at brokerage firm Nava Benefits, said during a recent SHRM webinar. "Everybody is feeling a bit of pressure."
There are multiple factors contributing to soaring health care costs, including an aging population that utilizes more health care services, delayed care, and GLP-1 drugs. But there are steps employers can take to try to control rising costs.
IRS Provides Penalty Relief from Reporting Requirements of Big Beautiful Bill
The IRS has waived penalties for One Big Beautiful Bill Act reporting requirements in tax year 2025. Get guidance on overtime and tip deductions compliance.
Are AI Subscriptions the Next Employee Benefit to Watch?
As more organizations rely on the use of artificial intelligence in the workplace, a growing number of employers are using the technology in another way: offering access to AI services as an employee benefit.
Sixteen percent of employers said they offer employees subscriptions to AI chatbots, such as ChatGPT, Microsoft Copilot, or Claude.ai, according to the 2025 SHRM Employee Benefits Survey. Others are providing reimbursements, allowing employees to expense subscriptions to those services. Industry experts said they think the trend is just beginning.
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