The high costs of GLP-1s are putting employers in a tough spot—here’s what the data says.

Rising demand for effective weight loss medications has fueled a sharp increase in health plan spending, placing employers under new financial pressure to manage costs while still offering meaningful weight loss benefits.

Why Are GLP-1 Drug Prices Rising So Fast?

GLP-1 receptor agonists, the class of medications behind many popular weight loss drugs, have demonstrated remarkable results. However, their cost trajectory has led to rising concerns across U.S. workplaces. 

According to a Reuters article that inspired this blog, more than half of large employers are now signaling plans to reduce healthcare benefits in 2026 due to escalating GLP-1 and specialty drug costs.

Mercer’s latest employer survey found that 77% of respondents view weight loss drug expenses as their top challenge for health benefits budgets. With GLP-1 prescriptions averaging around $1,000 per month, these medications now account for over 10% of total employer health plan claims in 2025, according to data cited by the International Foundation of Employee Benefit Plans (IFEBP).

Data: GLP-1 Effects on Employer Health Plans

Across the U.S., the average PMPM cost for these drugs leapt from just $4.34 in 2022 to $19.19 in 2024 (Q1–Q3), with projections of $25 for 2025. This rapid increase poses a real challenge for employers striving to balance generous benefits with fiscal sustainability.

Year	% of Employers Covering GLP-1s	% of Total Claims (GLP-1s)	Avg Monthly Cost (GLP-1s)
2022	41%	6.9%	$4.34
2023	44%	8.9%	—
2024	44%+	10.5%	$19.19
2025*	—	>10%	$25 (projected)

(Data compiled from Reuters, 2024; Mercer, 2024; Intercept Health & HR Dive, 2024; WorldatWork & IFEBP, 2024)
*2025 data is projected.

The graph below visually represents the increasing cost per member per month (PMPM) for GLP-1 medications between 2022 and 2024 with the predicted increase for 2025. 

Rising Average Monthly Cost per Member for GLP-1 Medications (2022–2025)

(Data compiled from Reuters, 2024; Mercer, 2024; Intercept Health & HR Dive, 2024; WorldatWork & IFEBP, 2024)

The Data Explained:

GLP-1 Coverage Adoption

Coverage for GLP-1s among large employers (500+ employees) grew from 41% in 2023 to 44% in 2024, with projections showing continued expansion as employers weigh cost versus employee demand (Intercept Health, HR Dive).

Impact on Claims

GLP-1s now represent more than 10% of annual pharmacy claims for many employers in 2025—a sharp rise compared to previous years (WorldatWork, IFEBP).

Future Trends

While some companies may pull back coverage due to rising costs, others are investing in robust clinical management and holistic employee health programs, seeking long-term return on investment through improved health outcomes (WorldatWork, IFEBP).

What’s Next: Employer Weight Loss Benefit Strategies

Faced with rising costs, employers are exploring new weight loss benefit alternatives and innovative plan designs:

• Wellness Incentives & Lifestyle Programs: Companies are strengthening wellness programs by offering rewards for healthy habits, nutrition coaching, and access to fitness resources—empowering employees to pursue non-pharmaceutical solutions.
• Coverage Review & Utilization Controls: Utilization management, such as step therapy or prior authorization for GLP-1s, is now commonplace to ensure use is appropriate and cost-effective.
• Plan Design Adjustments: Many employers are setting annual maximums, raising deductibles, and boosting cost-sharing to help offset rising pharmacy costs.
• Expanded Digital and Behavioral Support: Personalized programs focusing on nutrition, physical activity, stress management, and behavioral health are being integrated to boost long-term outcomes.
• Health Savings and Flexible Spending Accounts: Tax-advantaged accounts let employees apply pre-tax dollars to eligible weight management expenses, further supporting individualized choice.

Balancing Cost and Care

Employers recognize the value of supporting employee health and productivity, but the surging cost of GLP-1 medications is prompting a serious reassessment of traditional benefit models. 

As the Reuters article notes, this cost pressure is spurring dialogue across the benefits industry on how to offer sustainable, competitive, and equitable weight management support.

Zero Cost Wellness Solutions for Employers

Employers are at a pivotal moment as GLP-1 costs continue their steep climb. The future of weight loss benefits will depend on balancing innovation, sustainability, and employee demand. A zero cost wellness program, offered by Agile, represents a powerful, practical way forward for organizations committed to workforce health.

• Comprehensive virtual wellness programs at no cost to employers and some of the lowest industry pricing for employees.
• Flexible fitness, nutrition, and behavioral health resources designed to drive lasting change.
• Easy integration into existing benefits, supporting both large and small organizations.

By promoting engagement and healthier lifestyles—without the financial burden of high pharmacy costs—Agile enables organizations to prioritize employee health, boost productivity, and protect the bottom line.

Interested in learning more? Let’s talk!