Obesity Medication Insurance Coverage? Employers Embrace the Inclusion of Novo Nordisk's Wegovy in Health Coverage

Coverage for obesity medications, including Novo Nordisk A/S's NVO Wegovy, is expected to expand among U.S. employers, according to a new survey conducted by healthcare program provider Accolade Inc ACCD and research firm Savanta.

The survey indicates a growing willingness among employers to include GLP-1 drugs like Wegovy in their health coverage plans amid rising healthcare costs associated with the increased popularity of such weight-loss treatments.

Accolade and Savanta polled 502 employers, Reuters noted, finding a significant increase in those considering including GLP-1 drugs in their coverage. The findings reveal that 43% of surveyed employers could potentially cover these drugs in 2024, marking a substantial rise from the current 25%.

Eli Lilly And Co's LLY Mounjaro, another contender in the GLP-1 diabetes drug category, is also on the ascent. Anticipated to receive approval for weight loss applications in the U.S. this year, Mounjaro is echoing the sales trajectory of Novo Nordisk's offerings.

Aon Plc AON, a benefits consultant, has highlighted the economic implications of this trend. The firm attributes a one percentage point rise in the anticipated 8.5% increase in employer healthcare costs for the upcoming year to the uptick in employee utilization of weight-loss drugs. The survey and subsequent analysis shed light on the intricate balance employers are navigating between expanding healthcare offerings and managing associated costs.

Price Action: NVO shares are down 0.65% at $91.46 during the premarket session on the last check Tuesday.