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Employers are increasingly reducing coverage for expensive GLP-1 medications, such as Ozempic and Wegovy, to control rising healthcare costs, but new research suggests that excluding these drugs could have unintended financial consequences, Inc. reports.
A study from the National Bureau of Economic Research found that employees using GLP-1 treatments experienced fewer long-term absences and increased productivity. Using long-term data from Denmark, researchers found that GLP-1 treatment reduced long-term sick leave by 17.3% and generated an estimated $866 in annual productivity gains per worker.
The findings suggest that while covering GLP-1 medications increases upfront insurance costs, employers may benefit from fewer missed workdays, improved employee health outcomes and greater productivity.
However, researchers caution that Denmark’s healthcare system and more generous sick leave policies differ significantly from those in the U.S., meaning the financial impact may not directly translate. U.S. employers also face higher direct healthcare costs because they receive less government support for medical expenses.
One survey found that many large employers view rising prescription drug costs, particularly GLP-1 medications, as a major contributor to higher insurance premiums, leading some companies to reduce coverage or increase employee cost sharing. Still, researchers argue that businesses should weigh the broader costs of excluding GLP-1 drugs, including absenteeism and reduced productivity from employees working while dealing with chronic health issues.
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