The number of employers covering GLP-1 drugs for weight loss is beginning to trend upward, Cigna Group executives told investors.
Eric Palmer, CEO of Evernorth, Cigna's health services business, told investors the number of employers in Express Scripts, its pharmacy benefit management business, that are covering the costs of weight loss drugs is around 50%, a "modest increase" from previous quarters.
Larger employers tend to cover the pricey drugs more often than smaller ones, Mr. Palmer said on a May 2 call, but the decision comes down to a variety of factors and employers' approach to benefits.
"[We] tend to see more spending, more coverage for employers with lower levels of turnover. We tend to see a variation, depending on the underlying clinical needs, underlying clinical conditions of the employee base and their dependents," Mr. Palmer said. "It really does come down to an employer-by-employer type of decision."
GLP-1 drugs approved for weight loss, Wegovy and Saxenda, can cost upwards of $15,000 annually. Some employers have pulled back coverage of the drugs because of the cost.
Cigna launched EncircleRx, a program aimed at helping employers control the cost of GLP-1 drugs, in March. Cigna CEO David Cordani told investors on May 2 the program now has 1 million enrollees.
Other insurers, including Elevance Health, have launched similar programs.