GLP-1s drop weight, but with a notable side effect: Expanded employer budgets. Weight-loss drugs have led prescription drug growth over the past five years.
New data show how sharply GLP-1 weight-loss drugs can increase pharmacy spending. Segal’s Health Plan Cost Trend Survey found prescription drug costs rose 18.3% in 2025 among health plans that covered GLP-1s for obesity, compared with 10.5% for plans that limited GLP-1 coverage to diabetes treatment.
Noting that a large share of U.S. adults are overweight or obese, Segal vice president Matt Nguyen said: “You’re seeing about 70% of your adult population who could be treated with these drugs that cost $10,000 to $15,000 a year, and that’s the crux of this issue: the convergence of those two factors.”
Employers are responding in several ways: requiring members to try lower-cost treatments first, using prior authorization, encouraging lifestyle programs, or choosing not to cover GLP-1s for obesity at all. Ultimately, the challenge for pharmacy plans is balancing clinical benefits and costs.