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GLP-1s at Work: Should Small Business Owners Cover the New Weight Loss Drugs?

Not a week goes by without someone asking:

“Does our plan cover Ozempic? “What about Wegovy or Mounjaro?”

If you're a small business owner, you’re probably hearing the buzz too. GLP-1 medications—first created for diabetes—have become increasingly popular for weight management and are being discussed as potential long-term health tools.

But the real question is:

Should your plan cover them?

Before we dive in, here’s an important clarification:

“Clinical decisions always belong between the employee and their healthcare provider. What we’re talking about here is the coverage side of things and how it impacts your business.”

Now let’s break this down the way we do in strategy sessions—plain talk, real considerations, and what small businesses just like yours are doing.


⚖️ The Pros: Why Some Employers Are Saying Yes



GLP-1s like Ozempic, Wegovy, and Zepbound support weight reduction and have shown promising benefits in areas like:

  • Improved metabolic health

  • Reduced risk of certain cardiovascular events

  • Greater mobility, energy, and day-to-day functioning

While mental-health improvements vary by individual, many people report feeling better as their physical health changes. To keep it accurate and balanced:

“Emerging research shows encouraging trends, especially around heart health and metabolic improvement, but individual results vary, and ongoing medical guidance is essential.”

Here’s why employers are considering coverage:

✔ A healthier workforce

Better energy + fewer sick days = higher productivity.

✔ Higher benefits satisfaction

Your team is hearing about these medications everywhere. Coverage makes your benefits package feel current and supportive.

✔ Competitive hiring + retention

Modern benefits matter. This is one of the most talked-about health topics in 2024–2025.

🧠 Real Case Example

A marketing agency in Florida added GLP-1 coverage through a level-funded plan with strong utilization rules.

Within 6 months:

  • Employees reported meaningful health improvements

  • Retention increased

  • A new hire specifically cited the benefits package as a deciding factor


💰 The Cons: Yes… These Medications Are Expensive



Monthly costs for GLP-1 medications often fall between $900–$1,300+ per person, depending on pharmacy, plan design, and rebates.

And here’s the accuracy piece employers need to understand:

“Most insurance carriers do not automatically cover GLP-1s for weight management alone. Coverage often requires specific medical criteria or a diabetes-related diagnosis.”

Here’s what to watch for:

• Coverage may be limited

Many plans approve GLP-1s only for diabetes or strict clinical need.

• Some plans treat GLP-1s as a pharmacy add-on

Coverage is not always included—you may need to upgrade the pharmacy benefit.

• Without utilization management, costs can escalate

Common safeguards include:

  • Prior authorizations

  • Step therapy

  • BMI or comorbidity thresholds

  • Physician documentation

📎 Pro Tip

Ask your carrier or PBM whether they offer:

  • GLP-1 clinical review programs

  • Tiered pricing

  • Rebates

  • Monitoring tools for adherence and cost control

These can dramatically change your risk profile.

👀 What Small Employers Are Doing in 2025

Employers fall into three main camps:

1. Saying yes—with conditions

Coverage is offered but requires clinical guidelines.

2. Offering access through voluntary or supplemental programs

Employees can opt in and pay more, but they gain access.

3. Watching and waiting

Some prefer to wait for more long-term cost trends or expanded insurance guidance.

✔ Smart Strategy Tip

Implement a 6–12 month pilot program, then evaluate:

  • Interest

  • Cost impact

  • Employee satisfaction

  • Outcomes

This makes your decision data-driven—not emotional.

🧩 Alternatives That Still Show You Care



Even if covering GLP-1s isn’t feasible right now, employers still have meaningful ways to support wellness:

• Wellness stipends

Helps with nutrition programs, exercise, health apps, and more.

• Telehealth mental-health benefits

Mental health and weight management often go hand-in-hand.

• Lifestyle coaching or digital wellness tools

Many offer metabolic coaching or GLP-1 alternatives.

Adding an accuracy note:

“These options don’t replace clinical treatment but provide accessible support that many employees value and use.”

Small steps matter. Employees can feel the difference when their employer invests in them.

📣 The Bottom Line

GLP-1 coverage isn’t just a healthcare decision—it’s a business decision.

You’re weighing:

  • Budget vs. demand

  • Short-term cost vs. long-term health gains

  • Competitive benefits vs. sustainability

Here’s the grounded truth:

“There is no single right answer for every small business. The best solution is the one that aligns with your budget, your culture, and your employees’ real needs.”

At Houtz Insurance, we help employers evaluate coverage options, control costs, and build benefits that actually work—with creativity, compliance, and strategy.

📞 Let’s Talk About Your Options



If your employees are asking about these medications—or if you want to compare coverage scenarios—I can walk you through the numbers and outline your options clearly.


 
 
 

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