The Benefits of Including Weight Loss Drugs on Employer-Sponsored Health Plans

With the rate of obesity continuing to rise throughout the U.S., so too are the introduction of new and promising weight loss drugs, such as Ozempic, Wegovy, and Mounjaro. 

While these weight loss drugs can be expensive, some employers are considering adding them to their employer-sponsored health plans. To support employees and help boost productivity, which can produce significant savings over the long term.

The Impact of Obesity on Health & Productivity

Obesity can lead to heightened health risks, including diabetes, stroke, heart disease, and various types of cancer. According to a new study by Goodroot, whose goal is to use innovative solutions to help lower the cost of healthcare for more Americans, adult obesity rates have risen from 30.5% of the population back in 2000 to 42% in 2020. 

In terms of productivity, the American College of Occupational and Environmental Medicine estimates annual productivity losses due to obesity range from $271 to $542 per employee. And absenteeism increases with the severity of obesity - up to seven extra days per year. Combine productivity issues and the national health impacts of obesity, it’s clear we all need to take steps to address what is fast becoming a national health crisis. 

Benefits of Providing Weight Loss Drugs to Employees

There are lots of long term benefits of offering weight loss drugs as part of an employer-sponsored health plan:

Improve the health of employees

As mentioned, obesity is a risk factor for various chronic conditions. By supporting weight loss efforts, employers can help to reduce overall healthcare costs for their employees and enhance productivity by addressing underlying health concerns before they become more serious.

Boost employee engagement 

Offering weight loss drugs as part of a health plan can demonstrate commitment to employee well-being. This level of commitment can motivate employees in their everyday tasks, encouraging them to participate in wellness programs where they feel more connected and supported in their workplace. 

Increase staff productivity 

Obesity impacts productivity in the workplace. For employees struggling with health issues relating to weight issues, it can lead to increased sick days, reduced energy levels, and lower overall work performance. Giving employees access to weight loss drugs can help staff address these challenges, which can positively impact their individual performance and overall productivity. 

Attract new talent

When attracting staff in a competitive job market, offering comprehensive health benefits can be a valuable tool. Health insurance is a major drawcard for attracting talent, with many young U.S. job seekers ranking health insurance among the top benefits they seek. 

According to Georgetown University, young adults rank health insurance as one of the top benefits they look for before accepting a new job. So the more comprehensive the insurance coverage, the more likely you are to attract and retain top-quality talent at your organization. 

Retain your employees

Organizations offering additional perks like weight loss drugs on their employer-sponsored health plans demonstrate commitment and support to employee wellness.  This helps existing employees feel they have the support of their employer and increasing loyalty and engagement. 

Areas to Consider Before Offering Weight Loss Drugs

While offering employees access to a weight loss drug, or a range of weight loss drugs, provides plenty of benefits, there are also some potential issues to consider.

Cost implications

Weight loss drugs can be expensive. For employers considering offering coverage of these types of medications, assessing the financial implications of adding these drugs to health plans is essential. It’s worth determining whether the benefits outweigh the costs before making a decision.

Ethical concerns

Because weight loss drugs can cause potential side effects and aren’t without risks (like other types of medications), employees should consider the ethical implications of offering these types of drugs to their employees. Again, like costs, it’s important to weigh the benefits versus the potential risks. One way to help overcome these issues is to ensure that you have provided all the relevant information (including risks), so employees can make an informed choice.

Individual responsibility

Weight management is an individual responsibility; while employers can promote health and well-being in the workplace by encouraging employees (and providing opportunities) to exercise and eat well, it’s up to employees to take advantage of these options at work. Weight loss drugs are only one tool that can help employees lose weight. Consider them as part of a holistic approach to weight management and health.

Long-term impacts of weight loss drugs

Over the long-term, an investment now into the health and well-being of your employees by giving them access to drugs they may not be able to afford could offer considerable benefits in the long term when it comes to retaining staff who are loyal and engaged. If offering weight loss drugs on your health plan aligns with the values, objectives, and employee well-being strategy of your organization, it could be the perfect opportunity to demonstrate your commitment to your employees. 

If you’ve got any questions about health insurance, including whether an employer-sponsored health plan or an individual health insurance policy is best for you and your family, get in touch with our agents today. Our locally based North Carolina agents are here to help you find the best health insurance, at a price that suits your budget and health needs.