As questions continue surrounding the coverage of popular glucagon-like peptide-1 (GLP-1) drugs, benefit providers are faced with managing costs while considering the overall health of their plan participants. The International Foundation of Employee Benefit Plans has been tracking GLP-1 coverage since October 2023. Newly released survey data revealed the following key trends for GLP-1 drug coverage:
- 60% of employers provide coverage for diabetes only (on the rise from 55% in 2025, 57% in 2024 and 49% in 2023)
- 36% provide coverage for both diabetes and weight loss (same as 2025, up from 34% in 2024 and 26% in 2023)
- 45% cover GLP-1 drugs for other FDA-approved conditions (sleep apnea, cardiovascular disease, etc.)
Among employers not covering GLP-1 drugs for weight loss, 9% are considering adding coverage for weight loss. The majority (83%) of those employers are excluding coverage through a carve-out from their medical and/or prescription drug plan.
A notable trend is the growing prominence of other approaches, including the following:
- 27% of employers encourage employees to obtain via a direct-to-consumer platform.
- 21% encourage employees to use their FSA, HSA or integrated HRA for GLP-1 drugs.
Carey Wooton, CEBS, Associate Vice President of Education at the International Foundation shared that the results indicate that most employers are not covering GLP-1 drugs for weight loss but instead focusing on how to support the overall health of their workers. Covered benefits for diabetes and weight loss include disease management/case management (74%), nutritional counseling (61%), and bariatric surgery (61%). Other benefit options covered for diabetes or weight loss include lifestyle modification programs, other prescription/non-GLP-1 drugs and medication-free weight-loss interventions.
Cost remains a primary driver in employer decisions around GLP-1 coverage. In 2023, respondents said GLP-1 drugs accounted for 6.9 % of annual claims, a figure that climbed to 11.4% in 2026.
The top ten factors for employers when considering GLP-1 coverage for weight loss are:
- Broker/consultant/PBM recommendations—58%
- Obesity as a risk factor for chronic diseases and associated costs—46%
- Impact/effectiveness of cost-control mechanisms on health insurance premiums—44%
- Long-term costs and difficulty measuring outcomes—41%
- Availability of direct-to-consumer options—39%
- Oral pill forms available—34%
- Selecting and monitoring vendor point solutions—32%
- Medication adherence factors—30%
- Immediate/short-term costs—29%
- Expanded price transparency and flat-fee pricing—26%
Visit www.ifebp.org/GLP2026 for more information.
