Obesity Drugs: Employers Embrace Virtual Healthcare to Manage Surging Costs

U.S. employers grappling with mounting expenses linked to covering obesity drugs like Novo Nordisk A/S's NVO Wegovy and Eli Lilly And Co's LLY Zepbound are increasingly turning to virtual healthcare providers such as Teladoc Health Inc TDOC to administer weight-loss management initiatives. 

Citing a benefits consultant, Reuters noted that employers aiming to curtail expenses might confine employees to smaller networks of more cost-effective providers or institute lifestyle changes as a prescription prerequisite. 

Others emphasized the potential for long-term health improvements via diet and exercise regimens.

Teladoc's Ananth Balasubramanian noted the shifting perspective among employers and health plans regarding covering these drugs when complemented by appropriate programs. 

A Business Group on Health survey revealed that more than a quarter of employers intend to enlist virtual providers to supervise obesity drug prescriptions in the upcoming year.

Entities like Boeing Co BA, Hilton Worldwide Holdings Inc HLT, and Fortune Brands Innovations Inc FBIN have already engaged or expanded agreements with virtual healthcare providers, indicating a growing trend among corporations. 

Employers are exploring various strategies, such as "step therapy" and "centers of excellence," to manage the utilization of GLP-1 drugs, proposing lifestyle changes through telehealth programs or pharmacy benefit managers as preliminary requirements. 

Citing a Truist analyst, Reuters reported that the market for virtual obesity drug management could reach $700 million in 2024 and grow to as much as $9 billion in the longer term, assuming providers charge around $30 per member per month and $50 for physician appointments.

While these initiatives aim to control costs and promote healthier lifestyles, concerns have emerged regarding continuity of care, with experts cautioning against steering patients away from their existing physicians and leaving them solely to virtual providers.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.