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More than one-third (36%) of employers now provide coverage of GLP-1 drugs for both weight loss and diabetes, a new survey from the International Foundation of Employee Benefit Plans found. The number that offer coverage for diabetes only has declined to 55% from 57% last year.

These results reflect both the surging popularity of GLP-1 for weight loss and the challenge of balancing health benefits with the high cost of treatment.

“This new survey data show that over the past two years, GLP-1 claims have continued to rise, reflecting a sustained interest in these drugs as both a weight-loss and diabetes treatment,” said Julie Stich, the federation’s vice president of content. “Organizations are balancing the ongoing demand from employees for GLP-1 coverage for weight loss by continuing to explore feasibility through cost-control mechanisms.”

The average representation of GLP-1 drugs used for weight loss in total annual claims was 10.5% for 2025, an increase over the 2024 average of 8.9% and the 2023 average of 6.9%. Twenty-seven percent of employers reported that GLP-1 drug costs account for more than 15% of their annual claims.

More than three-quarters of employers control costs through utilization management. Among this group:

  • 96% require prior authorization;
  • 26% require reauthorization for refills;
  • 14% use a physician-led approach;
  • 5% limit prescribers by type; and
  • 3% limit prescribers to a telehealth or virtual care vendor.

Sixty-eight percent of employers who cover GLP-1 drugs rely heavily on eligibility requirements as a cost-control measure. The most prevalent requirements include minimum body mass index, (88%); obesity, with one other chronic disease (60%); obesity and type 2 diabetes, (34%); obesity, with two or more other chronic diseases (24%); nutrition and dietary requirements (24%); and physical activity requirements (9%).

A similar survey in Canada found that 31% of employers now cover GLP-1 drugs for both diabetes and weight loss, an increase from 17% in early 2024. Just as in the United States, prior authorization and other utilization management strategies remain the primary tools for controlling costs.

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