The Cost of Health: GLP-1s and the Future of Employer Healthcare
May 3, 2025, 3:36 am
Location: United Kingdom, England, City of London
Employees: 10001+
Founded date: 1919
Total raised: $350M
In the world of healthcare, costs often rise like a tide, relentless and overwhelming. But a new wave is forming, one that promises to reshape the landscape of employer-sponsored health plans. This wave is driven by GLP-1 medications, a class of drugs that have shown potential not just for treating diabetes but also for weight management. A recent study by Aon reveals that these medications could be the lifeboat that helps employers navigate the turbulent waters of rising medical costs.
Aon’s research, based on medical claims data from 139,000 U.S. workers, paints a promising picture. Over two years, patients using GLP-1 drugs like Ozempic and Wegovy experienced significant health improvements. The result? A slowdown in the growth rate of medical costs. This is akin to finding a leak in a ship and patching it before the water floods in.
Initially, the use of GLP-1s comes with a price tag. These medications can cost over $1,000 per dose, leading to a spike in employer drug spending. Yet, the initial investment may yield long-term savings. Aon’s analysis indicates that after the first year, while costs may rise due to increased doctor visits and monitoring, the tide turns. By the end of the second year, the medical cost trend for GLP-1 users slows by an average of 7%. In contrast, those not using the drugs see a 14% increase in costs.
The most striking benefit? A reduction of over 40% in major cardiovascular events, such as heart attacks and strokes. This is not just a statistic; it’s a lifeline for many workers. The implications are profound. Employers who invest in GLP-1 coverage may not only improve employee health but also reduce their overall healthcare expenditures.
Aon’s findings suggest that the return on investment for GLP-1s is not just a possibility; it’s becoming a reality. The company has even launched a subsidized GLP-1 weight management program for its workforce, complete with virtual wellness visits and home blood tests. This proactive approach is a beacon for other employers, showing that investing in employee health can lead to healthier bottom lines.
However, the healthcare landscape is not without its challenges. The rising demand for GLP-1s has led to increased scrutiny and questions about sustainability. As more people seek these medications, the pressure on healthcare systems and employers will intensify. The question remains: can the benefits of GLP-1s outweigh the costs in the long run?
Beyond the realm of pharmaceuticals, Aon’s recent Client Trends 2025 report highlights four megatrends shaping the future of business and society: Trade, Technology, Weather, and Workforce. These interconnected trends create a complex web of challenges for employers.
Trade and technology are two sides of the same coin. As companies adopt new technologies, they must also navigate the risks that come with them. Artificial intelligence, for instance, is revolutionizing supply chains but also introduces vulnerabilities, from cyber threats to regulatory hurdles. Employers must adapt quickly or risk being left behind.
The workforce is evolving alongside these trends. As AI reshapes job roles, companies face the dual challenge of upskilling employees while maintaining human oversight. This balance is crucial for fostering innovation and effective decision-making.
Weather, too, plays a significant role. Extreme weather events are becoming more frequent, impacting employee health and productivity. Employers must consider the physical and emotional well-being of their workforce in the face of climate volatility. The connection between weather and trade is evident, as disruptions can ripple through supply chains, affecting everything from production to logistics.
In this landscape of uncertainty, employers must be proactive. Aon’s report emphasizes the need for integrated data and analytics to navigate these interconnected risks. Companies that can anticipate and respond to these challenges will not only survive but thrive.
As we look to the future, the role of GLP-1s in employer healthcare is just one piece of a larger puzzle. The potential for improved health outcomes and reduced costs is enticing. However, the broader context of trade, technology, weather, and workforce dynamics cannot be ignored.
In conclusion, the healthcare tide is shifting. GLP-1 medications offer a glimpse of hope for employers grappling with rising costs. But as they navigate this new terrain, they must also consider the broader megatrends at play. The future of employer healthcare will require a delicate balance of innovation, investment, and insight. Only then can employers truly harness the power of health to drive their businesses forward.
Aon’s research, based on medical claims data from 139,000 U.S. workers, paints a promising picture. Over two years, patients using GLP-1 drugs like Ozempic and Wegovy experienced significant health improvements. The result? A slowdown in the growth rate of medical costs. This is akin to finding a leak in a ship and patching it before the water floods in.
Initially, the use of GLP-1s comes with a price tag. These medications can cost over $1,000 per dose, leading to a spike in employer drug spending. Yet, the initial investment may yield long-term savings. Aon’s analysis indicates that after the first year, while costs may rise due to increased doctor visits and monitoring, the tide turns. By the end of the second year, the medical cost trend for GLP-1 users slows by an average of 7%. In contrast, those not using the drugs see a 14% increase in costs.
The most striking benefit? A reduction of over 40% in major cardiovascular events, such as heart attacks and strokes. This is not just a statistic; it’s a lifeline for many workers. The implications are profound. Employers who invest in GLP-1 coverage may not only improve employee health but also reduce their overall healthcare expenditures.
Aon’s findings suggest that the return on investment for GLP-1s is not just a possibility; it’s becoming a reality. The company has even launched a subsidized GLP-1 weight management program for its workforce, complete with virtual wellness visits and home blood tests. This proactive approach is a beacon for other employers, showing that investing in employee health can lead to healthier bottom lines.
However, the healthcare landscape is not without its challenges. The rising demand for GLP-1s has led to increased scrutiny and questions about sustainability. As more people seek these medications, the pressure on healthcare systems and employers will intensify. The question remains: can the benefits of GLP-1s outweigh the costs in the long run?
Beyond the realm of pharmaceuticals, Aon’s recent Client Trends 2025 report highlights four megatrends shaping the future of business and society: Trade, Technology, Weather, and Workforce. These interconnected trends create a complex web of challenges for employers.
Trade and technology are two sides of the same coin. As companies adopt new technologies, they must also navigate the risks that come with them. Artificial intelligence, for instance, is revolutionizing supply chains but also introduces vulnerabilities, from cyber threats to regulatory hurdles. Employers must adapt quickly or risk being left behind.
The workforce is evolving alongside these trends. As AI reshapes job roles, companies face the dual challenge of upskilling employees while maintaining human oversight. This balance is crucial for fostering innovation and effective decision-making.
Weather, too, plays a significant role. Extreme weather events are becoming more frequent, impacting employee health and productivity. Employers must consider the physical and emotional well-being of their workforce in the face of climate volatility. The connection between weather and trade is evident, as disruptions can ripple through supply chains, affecting everything from production to logistics.
In this landscape of uncertainty, employers must be proactive. Aon’s report emphasizes the need for integrated data and analytics to navigate these interconnected risks. Companies that can anticipate and respond to these challenges will not only survive but thrive.
As we look to the future, the role of GLP-1s in employer healthcare is just one piece of a larger puzzle. The potential for improved health outcomes and reduced costs is enticing. However, the broader context of trade, technology, weather, and workforce dynamics cannot be ignored.
In conclusion, the healthcare tide is shifting. GLP-1 medications offer a glimpse of hope for employers grappling with rising costs. But as they navigate this new terrain, they must also consider the broader megatrends at play. The future of employer healthcare will require a delicate balance of innovation, investment, and insight. Only then can employers truly harness the power of health to drive their businesses forward.