The Rise of Weight-Loss Medications: How SNF/AL Operators Can Navigate the Challenges in 2025

Weight-loss drugs, particularly anti-obesity medications (AOMs) like Ozempic and Wegovy, are reshaping the healthcare landscape in 2025. As demand for these transformative medications grows, skilled nursing and assisted living (SNF/AL) operators must assess the implications for their employee benefits programs and operational strategies.

While these medications can offer significant health benefits, they also come with challenges, including rising healthcare costs, questions about coverage, and potential HR burden. Here’s how SNF/AL operators can manage these complexities while supporting their workforce and controlling expenses.

The Weight-Loss Revolution: What You Need to Know

The global weight-loss drug market is expected to reach $100 billion by 2030, driven by medications that deliver transformative results for individuals struggling with obesity and related health conditions. These drugs, which mimic incretin hormones, improve glucose control, increase insulin, and suppress appetite, have become a cornerstone of the modern weight-loss journey.

In 2025:

• 26% of U.S. consumers plan to take a weight-loss drug to meet their New Year’s resolutions.
• Demand exceeds supply, leading some to turn to compounded or alternative versions of the drugs, which raise safety concerns.
• Future developments include expanded indications for obesity-related conditions like cardiovascular risk reduction and cognitive health improvement, with new approvals anticipated in the coming years.

Challenges for SNF/AL Operators

While AOMs promise significant health benefits, their growing popularity poses several challenges for employers:

Rising Costs: Weight-loss drugs are expensive, with annual costs for some medications exceeding $15,000 per patient. For facilities with self-insured health plans, covering these drugs could significantly increase overall healthcare spending.

Employees unable to access covered AOMs may turn to less expensive but riskier alternatives, potentially leading to health complications and higher long-term costs.

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Utilization Management: Without strict eligibility and monitoring criteria, AOM use could skyrocket, leading to misuse or overuse. Managing these medications requires robust systems for prior authorization, adherence tracking, and outcome monitoring.

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Workforce Impact: Employees who achieve weight-loss goals with AOMs may experience improved overall health, reducing absenteeism and improving productivity. However, this creates additional pressure on HR teams to balance demand with fair and effective benefits management.

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What SNF/AL Operators Should Do in 2025

Conduct a Cost Analysis: Evaluate the potential impact of weight-loss drug coverage on your facility’s healthcare spending. Consider factors like the cost of the drugs, adherence rates, and potential long-term savings from reduced obesity-related health conditions.

Implement Prior Authorization: Require detailed documentation from physicians to confirm that employees have attempted lifestyle changes before turning to AOMs. Use this process to ensure the medications are prescribed for medically appropriate reasons.

Monitor Utilization: Use drug utilization reviews to track adherence and therapeutic outcomes. This will help identify potential misuse and assess the effectiveness of the medications.

Educate Your Workforce: Clearly communicate your facility’s coverage policies and eligibility requirements for weight-loss medications. Provide employees with education on the benefits, risks, and realistic expectations of these medications, reinforcing that they are a tool to support—not replace—healthy lifestyle changes.

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Opportunities for SNF/AL Facilities

For SNF/AL operators, integrating AOMs into your employee benefits plan offers both challenges and opportunities:

• Improved Employee Health: Weight-loss drugs can lead to healthier employees, reducing absenteeism and increasing productivity.
• Long-Term Savings: While costly upfront, these medications could lower expenses associated with chronic conditions like diabetes and heart disease.
• Enhanced Recruitment and Retention: Offering AOM coverage as part of a competitive benefits package can help attract and retain top talent in a competitive labor market.

How Compass Total Benefit Solutions Can Help

At Compass Total Benefit Solutions, we understand the complexities of managing healthcare benefits in a rapidly changing landscape. Our expertise can help your facility navigate the challenges of incorporating weight-loss medications into your benefits plan.

Contact us today to learn how Compass Total Benefit Solutions can help you navigate the challenges and opportunities of 2025 with customized employee benefits strategies.