After years of rapid growth in prescriptions for GLP-1 weight-loss medications, some employers are beginning to reconsider whether they can continue covering the drugs, according to Korn Ferry.
Ten percent of employers that currently cover GLP-1 medications for weight loss plan to drop that benefit next year. Spending on the medications has climbed dramatically, reaching an estimated $80 billion in 2025, up from $15 billion in 2024.
More Workers Are Using GLP-1s
According to Gallup, 11% of U.S. adults now take GLP-1 medications for weight loss, up from just 3% in 2024. Nearly one in six Americans has used one of the drugs in recent years.
Many employers already limit coverage. Data from the International Foundation of Employee Benefit Plans shows that just over half of organizations cover GLP-1s for weight loss only when another chronic health condition is present.
The medications have also been linked to broader health improvements. Gallup data shows the U.S. obesity rate has fallen from 39.9% in 2022 to 36.4% this year, contributing to the argument that the drugs could reduce long-term healthcare costs.
Short-Term Costs vs. Long-Term Savings
Despite those potential health benefits, employer health plans are typically managed on annual budgets rather than long-term outcomes.
The International Foundation of Employee Benefit Plans estimates GLP-1 medications accounted for 11.4% of employer healthcare claims in 2025, making them one of the fastest-growing benefit expenses.
Rather than eliminating coverage entirely, many organizations are tightening eligibility requirements. Employers are increasingly using prior authorization, BMI thresholds, physician recommendations, and mandatory lifestyle-management programs before approving prescriptions. About one-third of employers now require participation in weight-management or lifestyle programs as part of GLP-1 coverage.
Some organizations are also directing employees to lower-cost direct-to-consumer platforms to help manage spending.
Employers Face Difficult Benefit Decisions
Benefits experts caution that removing coverage altogether could create employee dissatisfaction and raise broader questions about future healthcare benefits.
Instead, many expect employers to adopt more targeted coverage policies that balance rising costs with medical necessity while communicating benefit changes well before they take effect.
