Weight loss prescriptions Wegovy, Rybelsus and Saxenda – along with Ozempic – are driving health costs for employers up by more than $300 per insured worker this year, new data from benefits consultancy Aon says.
These GLP-1 drug costs are expected to boost healthcare spending through 2025, increasing from $324 per insured member this year up to $500 per insured health plan member in two years, new data from the benefits consultancy Aon says. By comparison, annual spending on such prescriptions in 2021 was $96 per member, Aon data shows.
Aon’s analysis comes from its Aon Rx claims data from nearly 500 employers and their 4.4 million health plan members. Aon said weight loss prescriptions Wegovy, Rybelsus and Saxenda have lead the growth with health spending contributions from Ozempic, which is approved to treat diabetes but is often prescribed off label by physcians for weight loss.
“As more drugs are approved by the FDA that demonstrate greater efficacy for weight loss, we anticipate increased demand due to the U.S. obesity prevalence rates and the sheer volume of potential new patients” Tracy Spencer, pharmacy practice leader for Aon said. “There is an opportunity to change people’s lives by improving their health. We need to ensure this investment now will result in improved health outcomes which in turn will curtail obesity related medical costs in the future.”
In the most recent quarter ended Sept. 30, Aon said employer health plans paid $27 per member per month for GLP-1 medication therapies, “with 76% coming from diabetes indicated drugs and 24% for weight loss. This is a 97% increase from the prior measurement period Q3 2022.”
The use of such medications and the continued growth of the weight loss class of prescriptions is adding to the total employer-paid premium. Aon said average costs for U.S. employers that pay for their employee health costs are projected to rise 8.5 percent to more than $15,000 per employee in 2024 with a full one percentage point of the total cost, or $150, due to GLP-1 drug spending growth.
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