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Recent insights highlight the increasing use of diabetes and weight loss medications such as Mounjaro, Ozempic, and Wegovy, raising concerns over rising health costs for large employers. Central to the discussion is whether these expensive GLP-1 medications will ultimately benefit workers’ health and reduce overall health expenditure in the long run. Analysts at Aon believe that positive outcomes are already becoming apparent.
“This trend is unprecedented,” stated Greg Case, CEO of Aon, a firm specializing in employer benefits. “Our data indicates a 44% drop in major cardiovascular incidents along with significant reductions in conditions like osteoporosis and various forms of pneumonia.”
Aon’s research demonstrates that within two years, patients using GLP-1 medications experience enhanced health outcomes, which leads to lower medical costs for both individuals and their employers. Nonetheless, this financial relief comes after substantial initial investments.
Currently, GLP-1 medications have a list price exceeding $1,000 per dose. The increasing approval and resultant demand for these drugs have caused employer drug expenses to surge. This upward trend has been noted to outpace even other high-cost specialty drugs such as those for cancer and autoimmune diseases, as highlighted by an analysis from Evernorth, a division of Cigna.
Aon’s study examined medical claims data from 139,000 employees with employer-sponsored health insurance who were prescribed GLP-1s from 2022 to 2024. Findings indicated that, beyond the direct drug costs, patients on GLP-1s generally incurred higher medical expenses in their first year, primarily due to increased doctor consultations for monitoring treatment and addressing other obesity-related conditions like sleep apnea and acid reflux.
“The initial rise in costs appears during the first 12 to 15 months,” noted Case. “Patients are seeking treatment for underlying health issues exacerbated by obesity.”
However, by the end of two years of using GLP-1 medications, there was an average 7% reduction in overall healthcare costs for these patients compared to similar workers who were not using these medications. Those who strictly adhered to the prescribed drug regimen realized even greater savings, approaching 13%.
Key factors driving these savings include a reduction of over 40% in major adverse cardiovascular events such as heart attacks and strokes, alongside decreased occurrences of diabetes.
With these findings, Aon has gained valuable insights to assist clients in recognizing the timeline for returns on investments made in providing insurance coverage for GLP-1s aimed at both weight management and Type 2 Diabetes.
“The data reveals noteworthy reductions in costs across all measures,” remarked Case. “This can be approached strategically, ensuring an economic benefit is achieved.”
As a follow-up to their research, Aon has introduced a subsidized GLP-1 weight management program for its U.S. staff, which encompasses weekly virtual wellness consultations and at-home blood testing to facilitate adherence to medication.
Aon is set to present the comprehensive findings from its study at the upcoming Milken Institute Global Conference on Monday.
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