Employers tighten GLP-1 coverage as costs rise

Employers are maintaining coverage for GLP-1 medication while tightening eligibility requirements as prescription costs increase. The International Foundation of Employee Benefit Plans found that the drugs represented 11.4% of annual claims for corporations in 2025 and almost 15% of claims for public employers, a slight increase from the year before. Thirty-six percent of corporations now cover the drugs for both diabetes and weight loss, while 60% limit coverage to diabetes. Employers are increasingly mandating stricter insurance criteria to help control costs, including BMI thresholds, prior authorization and lifestyle programs before approving the medications.