GLP-1 drug use surges, along with coverage costs for employers

• Key Insight: Learn why employee use of GLP-1 weight-loss drugs has nearly quadrupled since 2024.
• What's at Stake: Employers risk losing key talent or facing unsustainable health coverage costs.
• Supporting Data: 11% of U.S. adults currently take GLP-1 medications for weight loss.
  Source: Bullets generated by AI with editorial review

Americans are using GLP-1 weight-loss drugs at a record pace, with Gallup finding that use has nearly quadrupled since 2024, putting pressure on employers to find sustainable ways to cover the medications. 

Eleven percent of U.S. adults currently take GLP-1 medications for weight loss, up from 3% in 2024, according to the Gallup National Health and Well-Being Index. Another 15% said they have used the drugs for weight loss at some point, up 9 percentage points from 2024. 

At the same time, companies are also facing sharp increases in healthcare costs, with more of that burden increasingly falling on employees, said Jason Macaleer, chief strategy officer at Vida Health, a digital health company that provides virtual obesity and chronic care management programs. A study from Rice University published late last year found that the cost of health insurance has grown three times faster than workers' earnings since 1999.

Read more: As GLP-1 costs climb, more employers weigh dropping coverage in 2027

Employers are caught between growing demand for GLP-1 medications and concerns about the long-term cost of covering them, Macaleer said. Some employers view access to the drugs as a way to support employee health and improve retention, while others worry about the financial impact of broad coverage.

"There's this tipping point," Macaleer said. "You have some very paternalistic employers out there that believe in the efficacy of these drugs. They want to cover it. There's a huge demand for the drugs, but also employers realize that when used appropriately they can work and it can be a really good talent attraction and talent retention tool."

The findings of the Gallup index are based on a web survey of 5,065 U.S. adults conducted May 28 to June 5 through the Gallup Panel, which represents respondents across all 50 states and the District of Columbia.

Effective, when used correctly

Awareness of GLP-1 drugs for weight loss has also grown, with 91% of U.S. adults saying they are familiar with the medications, up from 80% in 2024, according to Gallup. Among current users, 68% are taking brand-name GLP-1 medications such as Ozempic or Wegovy, while 19% are using compounded or custom-mixed versions. Another 12% are unsure whether they are taking a brand-name medication. 

Read more: Rising health costs push employers to rethink benefits strategies

Most GLP-1 users say the medications are effective, regardless of whether they are taking brand-name or compounded versions, according to Gallup. About three-quarters of users in each group — 77% of those taking compounded or custom-mixed medications and 74% of those taking brand-name drugs — said the treatments are either "effective" or "extremely effective."

Compounded GLP-1 users were slightly more likely to rate the medications as "extremely effective," with 39% reporting that level of effectiveness compared with 32% of brand-name medication users.

Read more: Inside Medicare's new GLP-1 demonstration

Adherence remains a challenge for GLP-1 medications, with data showing that many patients discontinue treatment within a year without additional lifestyle support, Macaleer said.

"GLP-1s are like most medications — dangerous when not used appropriately," Macaleer said. "Nutrition tends to be a big area where there needs to be some literacy that comes with it, and that type of literacy brings empowerment, so that people know how to appropriately use these drugs."

Macaleer emphasized that employers and benefits leaders should recognize that GLP-1 therapies are not appropriate for everyone and that coverage strategies should focus on ensuring the medications reach the patients most likely to benefit.

"There are side effect profiles for GLP-1s that really shouldn't be ignored," he said. "What might be a miracle drug for somebody might land somebody else in the hospital with a pretty scary and expensive hospital stay. So I think making sure you get the right people on the right medication at the right time needs to be part of your overall strategy when thinking about GLP-1 coverage."