Employers sour on weight-loss drugs
Some employers are ending insurance coverage for weight-loss drugs like Ozempic and Wegovy as their popularity — and cost — skyrockets. The injections can cost up to $1,350 a month per user; in the University of Texas System alone, the outlay for the medications more than tripled over a year and a half, to about $5 million a month in May. The school announced it will no longer cover the drugs starting Sept. 1. Some proponents say that by covering weight-loss drugs, employers will save money on health issues; according to a 2018 report by The Milken Institute, obesity-related complications resulted in $1.39 trillion worth of direct medical treatments and indirect productivity losses from chronic diseases in the United States.
- The market for weight-loss solutions is still booming: In July, Morgan Stanley predicted it will hit $77 billion worldwide in 2030.