Introduction:
The popularity of weight loss drugs, such as Ozempic, Wegovy, and Mounjaro, has surged due to attention-grabbing celebrity success stories. While these drugs, known as GLP-1s, are primarily used to treat diabetes, they have also shown the potential to promote weight loss. As a result, employers are witnessing a sharp increase in healthcare costs. To tackle this challenge, leaders seek assistance from benefit providers, advisers, and innovators to find alternative solutions for obesity treatment and weight management.
The Value and Limitations of GLP-1s:
Dr. Linda Anegawa, an obesity medicine specialist, acknowledges the significant impact of GLP-1s on those who require medical intervention. However, she warns against the misuse and abuse of these drugs, fueled by popular culture awareness and untested off-brand alternatives. Properly prescribed, GLP-1s can achieve surgical-like weight loss results. Nevertheless, the cost of long-term medication use raises concerns for employers.
The Alarming Costs and Obesity’s Impact:
According to the Centers for Disease Control, approximately 40% of American adults are obese, resulting in significant medical costs. The 2019 annual medical cost of obesity was estimated at nearly $173 billion, with obese adults incurring nearly $1,900 more in medical costs per year compared to their non-obese counterparts. With GLP-1s gaining consumer attention, these costs are likely to escalate further.
Employers Seek Solutions:
Employers are increasingly approaching direct-to-consumer businesses like Found, a weight management platform, to address rising costs. Sarah Jones Simmer, CEO of Found, highlights the dilemma employers face. While they recognize the potentially life-changing impact of drugs like Ozempic and Wegovy in preventing diabetes and musculoskeletal challenges, they also understand the need for clinical appropriateness and cost management.
The High Costs and Employer Concerns:
Some employers have reported that Ozempic has become their most expensive drug, with one organization seeing over $100,000 in Ozempic costs in a single month. GLP-1 utilization has also seen a nearly four-fold increase year-over-year. Employers, who bear the insurance costs, understand that unlimited coverage is not feasible due to the average annual cost of $17,000 per individual and the long-term nature of the treatment. However, they aim to guide employees towards more appropriate care and access options.
Innovative Approaches for Weight Management:
To address the obesity epidemic, various programs have emerged, recognizing obesity as a chronic condition. Found for Business and Noom for Work leverage technology, coaching, and clinical care to promote healthier lifestyles. Teladoc Health introduced Provider-Based Care, granting access to physicians, coaching, and medication for weight loss and pre-diabetes. These programs aim to shift the perception of weight management, focusing on individual biological needs rather than quick fixes.
The Role of Holistic Digital Support:
Similar to the destigmatization of mental health care through digital platforms, leaders in weight management hope to achieve the same with holistic digital support. Accessing care through mobile devices eliminates the stigma associated with traditional weight management centers. It also provides personalized care, interventions, and cost-effective solutions.
Embracing Sustainable Change:
Kelly Bliss, president of U.S. group health at Teladoc, emphasizes the importance of a comprehensive approach to weight management. Instead of relying solely on medications like GLP-1s, sustained change and weight loss should be supported through nutrition, coaching, sleep management, stress management, and other behavior change tools. Employers are encouraged to develop sustainable plans to address rising costs over time.
Conclusion:
The increasing demand for weight loss drugs like Ozempic and Wegovy is causing healthcare costs to skyrocket for employers. Employers are partnering with benefit providers, advisers, and innovators to mitigate these expenses and offer effective weight management solutions. Employers can support their employees’ health while managing costs by embracing holistic approaches, utilizing digital platforms, and focusing on sustainable change. It is crucial to recognize obesity as a chronic condition and provide personalized care options that go beyond medication, ensuring long-term success in weight management.
Disclaimer: It is important to note that insurance coverage for drugs like Ozempic may be limited to individuals with diabetes.
