GLP-1 medications are transforming health outcomes — but rising costs challenge employers to find sustainable strategies. Gallagher data reveals a sharp increase in spend, prompting a need for tailored benefit approaches.
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Glucagon-like peptide-1 (GLP-1) medications have rapidly emerged as one of the top pharmacy spend drivers in employer-sponsored health plans. Their clinical benefits are compelling — fewer heart attacks, reduced hospitalizations and fewer emergency room visits. But as use surges — especially among women aged 40 to 60 — so do the costs.

Recent data from Gallagher reveals a 35% increase in GLP-1 drug class spend in 2024, with another 25% projected for 2025. While these medications do improve health outcomes, the current cost trajectory still outweighs the reduction in medical spend. This difference presents a complex challenge for employers seeking to balance employee wellbeing with sustainable benefits strategies.

So, how should organizations respond? The answer lies in a tailored approach — one that considers demographics, utilization patterns and long-term goals.

See the data for yourself and explore the key findings.

To start a conversation about how GLP-1 management can fit into your organization's benefits plan, contact us.

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