A key question for the widespread adoption of weight loss drugs is that of payer coverage. In general, we believe that compelling clinical results and popular pressure will result in broad coverage of these drugs for patients with obesity. In many cases, payers may impose prior authorization requirements to limit coverage to patients who have a BMI above a certain threshold or who have comorbidities.Employer-sponsored plans and self-insured employers Ozempic (labeled for diabetes treatment) has already become a high-cost drug for many employers, and coverage of weight loss drugs could represent a significant additional cost burden. Moreover, employers are unlikely to see substantial downstream benefits in avoided cardiovascular disease and other comorbidities within their employee populations because these conditions tend to develop later in life. However, despite reports that some self-insured employers are dropping weight loss drug coverage,3 we believe that employee pressure will force many employers to begin covering weight loss drugs within the next two to three years.
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