GLP-1 medications are transforming employee health, but their high costs pose challenges for employers. AI is stepping in to optimize benefits, personalize wellness, and drive smarter health strategies.
GLP-1 medications are in high demand, driven by their effectiveness in managing Type 2 diabetes and their widely publicized weight loss benefits. Employees are noticing, and many are asking, if their health benefits will cover these pricey prescription medications. For HR leaders, the challenge is clear: while GLP-1s can be game-changing for employee health, they come with a high price tag and some unknowns, especially when it comes to managing long-term weight loss.
With healthcare costs on the rise, employers must find a balance between supporting employee wellbeing and financial sustainability. And perhaps as importantly, employers need to provide sustainable habit change and support programs for healthy weight whether or not employees are taking a GLP-1. The irony is that we as employers must go beyond medication access especially when we are providing GLP-1s.This is where AI comes in, making it easier for HR teams to make smarter, data-driven decisions while improving employee health and wellness in a cost-effective way.
Why employees want GLP-1s — and why employers are hesitant
A study by SHRM found that 34% of organizations now cover GLP-1 medications for both diabetes and weight loss, up from just 26% in 2023. Another 57% only offered coverage for diabetes, showing that employers are starting to rethink their healthcare strategies.
Why the surge? Obesity-related health issues, like heart disease, high blood pressure, and musculoskeletal issues are pushing healthcare costs higher and leading to lost productivity. The CDC estimates that obesity-related absenteeism costs U.S. employers about $3.38 billion annually. Offering weight management solutions — whether through GLP-1s or other wellness programs — can impact employee health and overall performance.
However, the costs are significant. A 2023 study by Nomi Health found that GLP-1 medications made up nearly 10% of prescription costs for self-funded employers, up from 6.9% the year before. And, with some of these medications priced over $1,000 per month per employee, it's tough for businesses — especially smaller ones — to justify the expense.
Holistic health: The key to employee wellbeing
While GLP-1 medications work for some, they cannot be the only answer when it comes to employee health. A holistic approach — one that focuses on nutrition, physical activity, mental health, sleep, hydration, and stress management — is required to have a lasting impact on overall well-being and help create a more engaged, productive workforce.
Wellness isn’t just about taking medications to rid the body of disease — it’s a lifestyle. While GLP-1 medications can help with weight loss, they’re most effective when combined with healthy habits. According to FDA labeling, GLP-1 medications should be used "as an adjunct to a reduced calorie diet and increased physical activity," meaning the label explicitly states that these drugs should be used alongside a lifestyle change program including dietary modifications and exercise; essentially, the medication is most effective when combined with behavioral changes. Not only are these programs essential for employees taking these prescription medications, but they are equally important for those who aren’t using GLP-1 medication at all. While we might wish it were different, the truth is weight management and health improvement aren’t the same for everyone. Employees need access to a range of solutions that fit their unique and evolving needs. This is precisely where AI is making a major impact.
How AI is changing the game
AI is completely changing the way companies handle healthcare and benefits. It’s helping HR teams offer more personalized, data-driven solutions that support both individual employee needs and overall business health goals. Think of AI as the behind-the-scenes assistant — looking at employee data, predicting health outcomes, and directing employees to the right resources when they need them most.
AI-driven health analytics can help employers in many ways:
- Targeted solutions: AI can dig into clinical and lifestyle data to identify which employees might benefit from GLP-1s, ensuring that coverage is both effective and efficient.
- Optimized medication adherence: AI tracks how well employees are sticking to prescribed treatments, reducing misuse and helping them get the best results.
- Cost reduction: By predicting the long-term health improvements and cost savings from different treatment plans, AI helps employers choose the most cost-effective options.
- Holistic well-being: Even if employees don’t qualify for — or choose not to use — GLP-1 medications, AI can still offer personalized support like fitness plans, nutritional guidance, and stress management resources.
The National Bureau of Economic Research estimates that using AI to analyze health data could help reduce unnecessary healthcare spending by up to 10%, saving the U.S. healthcare system $360 billion annually. Additionally, a 2024 study in NEJM Catalyst Innovations in Care Delivery showed that AI-assisted reviews of claims helped reduce costs by an average of $3,916 per flagged claim. The numbers speak for themselves — AI is cutting costs, while improving employee health.
AI is giving employees easy access to personalized health resources, like fitness plans, mental health support, and tips for managing chronic conditions. On top of that, agents like GrokkyAi help connect employees with other wellness benefits already offered by the company, increasing utilization and ensuring no one misses out on resources that could improve their health.
Strategies for employers
If you’re an HR leader trying to figure out how to meet the growing demand for GLP-1 coverage without breaking the bank, here are a few strategies to consider:
- Assess employee needs: Use data to figure out which employees are most likely to benefit from GLP-1 medications, and explore other wellness options for those who might not need them.
- Leverage AI: Tap into AI-powered health platforms to make smarter decisions about coverage, keep track of medication adherence, and give employees personalized wellness support.
- Promote holistic wellness: Ensure employees have access to resources that support their overall well-being — physically, mentally, and emotionally.
- Educate employees: Make sure your team understands their benefits, the pros and cons of GLP-1 medications, and how these fit into a bigger wellness plan.
- Monitor and adapt: Use AI to track how well your benefits are working and make adjustments as needed to ensure they’re as effective as possible.
The future of employee wellness
As GLP-1 medications become more popular, employers will need to rethink how they’re offering health benefits. It’s no longer just about covering medication — it’s about providing a well-rounded approach to employee wellness that can help teams stay healthy and engaged, while also keeping costs manageable.
The real key is integrating AI-driven insights into a holistic wellness program. When used together, they can empower and inspire employees to take control of their health, giving them the right support when they need it most. And at the same time, this helps employers save money and create a healthier, more productive workforce.
If you're looking for ways to level up your benefits strategy and improve employee wellbeing, download the latest white paper from Grokker Innovation Labs for practical tips on how to use AI to make your benefits work harder for your team.
