---
title: "Balancing the Scales: The Financial Implications of GLP-1 Drugs for Employers"
description: Discover the financial impacts of GLP-1 weight loss drugs on employers, their benefits, and how to manage costs.
image: https://blog.valenzhealth.com/hubfs/Blog/AdobeStock_838035083%20(2)-1.jpeg
---

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# Balancing the Scales: The Financial Implications of GLP-1 Drugs for Employers

 By [Vālenz Health®](https://blog.valenzhealth.com/author/valenz-health) - October 21, 2024

[Pharmacy and Prescription Drugs](https://blog.valenzhealth.com/tag/pharmacy-and-prescription-drugs) [GLP-1s](https://blog.valenzhealth.com/tag/glp-1s)

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![A patient holds a GLP-1 injector in hand while standing on a scale. ](https://blog.valenzhealth.com/hs-fs/hubfs/Blog/AdobeStock_838035083%20(2)-1.jpeg?width=485&height=485&name=AdobeStock_838035083%20(2)-1.jpeg)

Glucagon-like peptide-1 (GLP-1) weight loss drugs have become quite popular for those living with diabetes and/or obesity. These drugs can have positive impacts on patients’ lives, but they also have a large financial impact on employers.

Many employers generally cover GLP-1 weight loss drugs for diabetes, but not all are on board with covering them for obesity due to the financial implications. 

## What are the financial impacts of GLP-1 drugs on employers?

The affordability of GLP-1 weight loss drugs impacts employees and employers alike. The list price for GLP-1s ranges between [$936–$1,349](https://www.ajmc.com/view/most-insured-adults-still-have-to-pay-at-least-part-of-the-cost-of-glp-1-drugs) before insurance or discounts kick in. It’s common for people to take these drugs for several months or years, which further contributes to already-high benefits costs.

According to the [Centers for Disease Control and Prevention](https://www.cdc.gov/obesity/adult-obesity-facts/), nearly 42% of U.S. adults have obesity, and approximately 9% have severe obesity. The economic reality of this is that employers must decide how to cover GLP-1s (if they’ll cover them at all). 

Many employers are starting to make strides toward deciding how they’ll cover these drugs. One survey found that [approximately 57%](https://blog.ifebp.org/employer-coverage-of-glp-1-drugs-on-the-rise/) of employers cover GLP-1s for diabetes, which is up from 49% in 2023. The same survey also found that 34% of employers cover GLP-1 drugs for weight loss and diabetes, which is up from 26% in 2023.

Demand for GLP-1 drugs only continues to rise, so employers are poised to continue spending more on these drugs. As demand increases, drug companies will likely continue to develop more GLP-1s for weight loss, and this competition will drive down prices, but until that happens, employers must come up with a [strategy to curb spending](https://blog.valenzhealth.com/navigating-the-world-of-glp-1s-key-insights-for-employers).

## How are employers addressing costs?

Many employers are relying on techniques such as utilization management, prior authorization, and body mass index or comorbidity requirements to control costs. These tactics help employers ensure these drugs aren’t being used irresponsibly, such as for crash dieting, which can diminish available supply and drive up costs.

However, another effective strategy that can help manage costs for GLP-1 weight loss drugs and other medications is to explore [alternate prescription sourcing](https://blog.valenzhealth.com/4-ways-to-reduce-pharmacy-spend), such as coupons, copay cards, and supplemental benefit programs, such as [Valenz Bluebook Rx](https://www.valenzhealth.com/solutions/member-experience/bluebook-rx/). 

Valenz Bluebook Rx identifies overpriced prescriptions and suggests lower-cost comparable alternatives, helping members and employers save on waste and overspending. A Valenz Bluebook Rx expansion also helps address the rising cost of GLP-1s, enabling members and employers to lower their GLP-1 expenses.

## What are the benefits of GLP-1 weight loss drugs?

The financial implications of GLP-1 weight loss drugs may be high, but for many people, the benefits are quite significant. 

### Weight Loss

GLP-1s can help with weight loss by mimicking the body's natural processes to control appetite. These drugs may help people lose approximately [approximately 15–20%](https://pubmed.ncbi.nlm.nih.gov/36321278/) of their body weight, which is a range of weight loss that was only previously achieved through bariatric surgery. This type of surgery can put a lot of strain on patients’ bodies, which GLP-1s can help them avoid.

### Health Impacts

[Obesity can lead to serious health impacts](https://www.who.int/news-room/questions-and-answers/item/obesity-health-consequences-of-being-overweight), such as heart disease, stroke, type 2 diabetes, some cancers (colon, breast, and endometrial), and musculoskeletal disorders, such as osteoarthritis. Health problems such as these start when someone is slightly overweight, and they then worsen as someone gains more weight. 

GLP-1s help those with obesity minimize potential side effects that may arise from obesity, such as kidney or heart problems. These drugs also may lower the risk of heart disease, heart failure, stroke, and kidney disease. GLP-1s may also improve blood pressure and cholesterol levels and help control blood sugar. 

### Reduced Costs for Other Health Conditions

GLP-1s may help companies reduce [health costs associated with obesity](https://blog.valenzhealth.com/the-impact-of-glp-1-weight-loss-drugs-on-workforce-health-a-comprehensive-overview) and other conditions arising from obesity. By preventing chronic conditions that lead to specialists or hospital admissions, employees and employers could save money on these visits and the costly prescriptions that result from them. This also translates to less time off work, improved work performance, and reduced overall healthcare costs.

## Manage Costs while Supporting Employee Well-Being

GLP-1s have significant benefits for people, but they also have a large financial impact on employers and employees alike. Discover how to curb costs for GLP-1s and other prescriptions by adding [Valenz Bluebook Rx](https://www.valenzhealth.com/solutions/member-experience/bluebook-rx/) to your benefit offering. 

### Connect with Us to Learn More

 

![Vālenz Health®](https://blog.valenzhealth.com/hs-fs/hubfs/Valenz%20Logo%20Signature.png?width=48&height=48&name=Valenz%20Logo%20Signature.png) [Vālenz Health®](https://blog.valenzhealth.com/author/valenz-health)

Vālenz Health® empowers employers, brokers, payers, and providers to reduce costs, improve quality, and elevate the healthcare experience. Our solutions combine advanced technology, clinical expertise, and extensive cost, quality, and utilization datasets to execute across the entire healthcare journey — connecting insights and action for greater transparency, flexibility, and cost containment within a complex system. By helping our customers and members navigate healthcare with confidence, we support smarter care decisions, strengthen plan performance, and deliver better value for everyone we serve.

## Related Articles

[![A woman with a chronic health condition takes medication while sitting at a desk. ](https://blog.valenzhealth.com/hubfs/Blog/AdobeStock_600720024%20(1)-1.jpeg)](https://blog.valenzhealth.com/health-conditions-driving-up-healthcare-costs)

### [The Health Conditions Driving Up Healthcare Costs — and What Employers Can Do About Them](https://blog.valenzhealth.com/health-conditions-driving-up-healthcare-costs)

For the second year in a row, healthcare costs are expected to rise by 9% for the group market in the United States, according to the latest research by PWC.

[Trista Taylor](https://blog.valenzhealth.com/author/trista-taylor) July 02, 2026

[![A female patient holding an injection.](https://blog.valenzhealth.com/hubfs/Blog/AdobeStock_717197856%20(1)-1.jpeg)](https://blog.valenzhealth.com/weighing-the-costs-how-glp-1-weight-loss-drugs-can-save-employers-money-in-the-long-run)

### [Weighing the Costs: How GLP-1 Weight Loss Drugs Can Save Employers Money in the Long Run](https://blog.valenzhealth.com/weighing-the-costs-how-glp-1-weight-loss-drugs-can-save-employers-money-in-the-long-run)

The popularity of glucagon-like peptide-1 (GLP-1) weight loss drugs is on the rise, offering transformative health benefits for those struggling with obesity. For employers, these medications present a unique opportunity to improve employee well-being while addressing the substantial financial implications of chronic health conditions.

[Vālenz Health®](https://blog.valenzhealth.com/author/valenz-health) January 30, 2025

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