Demand for blockbuster GLP-1 weight-management drugs such as Ozempic, evidenced by one in four (26%) UK employees having already used one, is putting pressure on businesses to reconsider their whole approach to employee health, according to Howden Employee Benefits’ Changing Face of Employee Health report.
41% of employees believe their employer should cover these weight-management drugs as part of their healthcare plans. As a result, 44% of employers are poised to rip up and redo their healthcare plans to ensure they meet the evolving needs of employees, but this needs to be balanced with the financial outlay. This dilemma is creating new challenges for businesses as employee demands evolve, prompting an industry-wide overhaul of how many think about their provisions – even though most employers (88%) are happy with the ROI from their existing plans.
The rapid rise in usage means half (50%) of UK businesses that cover weight-management drugs now view them as a cost concern, directly impacting what they can offer as employee benefits. 49% expect costs to grow even further, and one in five (20%) businesses cite obesity related conditions and the associated treatment as the single most prominent factor driving their costs up, while only 5% are expecting them to slow down next year onwards.
However, while employers are going to have to absorb increased costs if they are to address demand and cover weight-management drugs, there is a potential trade-off. Weight-related illnesses, such as diabetes, account for a significant number of sick days, resulting in a lack of productivity, which can ultimately harm bottom lines. 72% of UK businesses are already investing in prevention, and using weight-management drugs as part of this could be an effective long-term strategy to curb health issues before they have a detrimental business impact.
Though medical inflation and rising prices will prove tricky to navigate, Howden’s Global Employee Health Report 2026 warns of the potential fallout employers face in failing to shake up healthcare plans and meet employee demands.
Cheryl Brennan, Managing Director of Howden Employee Benefits, commented: “The demand for these drugs is obvious, and employers can simply not afford to ignore it. However, the financial impact of new obesity medications also cannot be overlooked. It is no longer a future projection – it’s a current reality that is forcing business leaders to rethink their plan design and budget allocations.”
While these drugs offer incredible promise for patient health, their rapidly increasing use poses one of the biggest challenges to benefit affordability in decades. The challenge for employers is balancing the cost concern with the clear employee demand. Costs are rising rapidly, and medical inflation is set to be 7%, meaning when combined with general inflation, businesses are facing combined price hikes of over 10% over the next year. As a result, the focus of healthcare is changing to preventative measures, in an attempt to mitigate the effects of costs as early as possible, and weight-management drugs are becoming more popular as a prevention tool.
Treading the line on which drugs to cover will be weighing on the minds of business leaders. There remain plenty of drugs and treatments which are currently not covered by employers’ health plans. So firms will need to justify why they chose to cover weight loss drugs ahead of others. And with demand soaring, consideration must be given to the guardrails in place surrounding eligibility. Businesses will have to work out if this improvement balances the scales enough to absorb the cost and cover these drugs as part of their healthcare plans, which has the potential to reshape the employee healthcare space dramatically over the coming years.”
