Employers are rethinking health care benefits as demand for weight-loss drugs increases

UK employers are being forced to reassess their health care strategies and benefits as demand for weight management drugs increases among workers, according to new research.

More than a quarter of UK workers already use a weight management drug such as Ozempic, and two in five believe their employer should fund access to these treatments through workplace healthcare schemes. As a result, 44 percent of employers say they are now reviewing, or redesigning, their health coverage.

The findings come from Howden Employee Benefits’ Changing Face of Employee Health report, which suggests that blockbuster GLP-1 drugs are becoming a major issue in the future of workplace health.

Despite growing pressure from workers, employers are caught in financial responsibilities. Nearly nine out of ten businesses say they are currently satisfied with the return on investment in their health care plans, yet half of those who already cover weight management drugs now see them as a growing cost concern. Nearly half expect those costs to rise significantly, with one in five businesses citing obesity-related conditions as a major driver of increased health care costs.

Although only 5 percent of employers expect these costs to decrease next year, many are willing to make long-term trade-offs. Weight-related diseases such as diabetes contribute significantly to sickness absence and lost productivity. Around 72 per cent of UK employers are already investing in preventative health measures, and some see controlled access to weight management drugs as a way to reduce long-term health risks and associated business costs.

However, the report warns that failure to adapt health care systems can cause wider problems. With medical inflation forecast at 7 percent by 2026, and combined costs increasing by more than 10 percent once normal inflation is included, employers face tough decisions about which treatments to pay for and where to draw the line.

Cheryl Brennan, manager of Howden Employee Benefits, said the matter was no longer being considered. “The need for these drugs is obvious, and employers cannot ignore it. But the financial impact cannot be ignored – this is forcing business leaders to rethink program design and budget allocation.”

He added that although medicine offers important health benefits, it should not be treated as a cure-all. “Weight management medications are not a silver bullet. They need to sit within a comprehensive, personalized health plan with clear eligibility guidelines. Employers will also need to justify why they pay for these treatments ahead of others that are left out.”

As employee expectations change, the report suggests that workplace health care is entering a new phase, where prevention, personalization and complex financial transactions will define how benefits are structured in the coming years.