GLP-1 Medications: Strategic Considerations for HR Executives in 2025

GLP-1s are likely here to stay. And amid their huge rise in popularity, covering these drugs has become a big concern for many plan sponsors. In fact, in a recent survey from?Business Group on Health, 96 percent of employers said they worry about the long-term cost implications. So, what will the future hold for these medications? Here, we’ll look at five key trends impacting the future of GLP-1s. This includes the role they play in treating diabetes and obesity, as well as potential they have for treating other conditions in the future. I'll also share key advice employers should consider when building their personalized GLP-1 strategy.

Five key trends impacting the future of GLP-1s

Why is all of this important? According to the same survey mentioned above, 79 percent of employers are seeing an increased demand for obesity treatment from their employees. Likewise, demand for GLP-1s is steadily going up. What’s more is the landscape of this drug class is continually shifting. Employers need to stay vigilant to make the best decisions.

Here are five trends impacting the future of GLP-1s to watch:

1. Looking beyond diabetes and obesity. To date, GLP-1s have been effective in assisting with decreasing appetite and slowing digestion, both helpful in weight loss. This is in addition to how they work for patients with diabetes, by increasing insulin production and lowering blood sugar levels. Researchers are studying additional indications for GLP-1s that would extend focus beyond diabetes and obesity. Emerging opinions suggest these drugs have the potential for treating a variety of conditions. Some include fatty liver disease, cardiovascular health, neurodegenerative diseases and more.
2. Access and affordability. The high cost of GLP-1 drugs remains a significant hurdle for many patients. Some can cost as much as $16,000 annually, or $1,300 per month.
3. Increased competition. New GLP-1s are continually entering the pharmaceutical pipeline. While increased competition has the potential to drive down prices, it’s not always the case.
4. Long-term safety and effectiveness. GLP-1s have shown impressive short-term results. However, their long-term effects remain unclear. More data is needed to understand potential side effects and their lasting impact on weight and metabolic health. In addition, some studies show patients who utilize GLP-1s for weight loss may regain the weight after stopping.
5. Pipeline of new drugs and dosage forms. Right now, with the exception of one FDA-approved oral medication, most GLP-1s exist as injectables. It’s expected more oral tablet options may become available in the future, including those for weight loss. Currently, there’s no significant cost savings associated with oral options. However, they can be more attractive and accessible to patients for whom injections may be a barrier.

Our advice for managing GLP-1s

Employer approaches to covering GLP-1s aren’t one-size-fits-all. At Gallagher we offer a flexible range of cost management and utilization strategies. It’s our advice to consider a multi-pronged strategy.

We can walk you through approaches to cover diabetes only, obesity only or a combination of both. We also offer options from less restrictive to highly restrictive, with varying levels of potential savings and member disruption.

Conclusion

There’s a lot to consider around GLP-1s. It’s important to understand other factors too, like your industry and individual employee population. But perhaps the most important thing to remember is as a self-funded employer, you have options.

We’re here to help. Through thoughtful recommendations, it’s our role to guide plan sponsors toward elections that make the most sense for all participants. This can even be enhanced with general wellness and behavioral solutions aimed at addressing conditions in a holistic way. Together, we can craft an ideal custom approach to help plan sponsors manage their coverage, spend and clinical care.

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