Breaking the GLP-1 Cost Cycle for a Healthier Workforce, Lower Costs, and Smarter Care

The American workplace faces a costly challenge: how to offer access to high-demand weight-loss medications without overwhelming benefits budgets. With monthly prices exceeding $1,000, these treatments are becoming powerful tools in talent retention strategies across corporate America.

During a From Day One webinar, Cody Fair, chief commercial officer at digital health company Noom, shared just how dramatically these drugs are influencing employment decisions. 

GLP-1 medications have revolutionized obesity treatment, delivering substantial weight loss for millions of Americans. But their high price tags have triggered what benefits experts describe as a “cost cycle,” posing a serious threat to the sustainability of employer healthcare budgets.

Jennifer Jones, a clinical solutions architect at Noom and registered dietitian, outlined the financial stakes during the session. “Members that have obesity, their overall health care costs can be up to six times higher than someone that’s just overweight,” noting obesity's connection to more than 16 chronic conditions. 

With obesity rates exceeding 42% nationally and projected to surpass 50% within five years, employers face mounting pressure to act. Traditional approaches have proven inadequate. “What we’ve been doing isn’t working,” Jones said.

Perhaps no one understands the frustrations of accessing these medications better than Fair himself. Despite having a prescription for two years, he was only able to obtain his GLP-1 medication for seven months total and never for more than two consecutive months. Each time, the same obstacles emerged, the pharmacy was out of stock, prior authorization created lengthy delays, or the medication simply vanished from shelves by the time approvals came through. His frustrating cycle mirrors the experience of countless patients nationwide.

The root cause of these shortages may surprise those unfamiliar with pharmaceutical economics. Pharmacies are losing money on every GLP-1 prescription they fill. “We’ve even talked to the head of pharmacies at major major corporations that say, ‘I should just staple a $20 bill to the script when I send it out the door, because that’s what I’m losing every time,’" Fair said. This financial reality has led many pharmacies to avoid stocking these medications entirely.

Kelly Bourdet, journalist and founder of Apparata Media, moderated the discussion with Fair and Jones of Noom (photo by From Day One)

Even when patients successfully obtain these medications, the lack of comprehensive support threatens their efficiency in the patient’s daily life. Jones described what the company calls the 
“GLP-1 care gap,” the void between receiving a prescription and achieving sustainable weight loss.

“When people have that first script, and they get that medication, that’s often the end point of the interaction with the healthcare system,” said Jones. Without guidance on nutrition, exercise, and side effect management, many patients discontinue treatment prematurely.  Often, patients fall prey to a faulty system, regaining weight and potentially ending up less healthy than before.

Research presented during the session suggests that combining medication with behavioral support yields approximately 40% greater weight loss than medication alone. Patients receiving comprehensive support were also 1.6 times more likely to successfully taper off the medication while maintaining their weight loss.

To address these challenges, some employers are exploring alternative coverage strategies. Noom’s approach involves separating GLP-1 medications from traditional pharmacy benefit management and handling them as a distinct supplemental benefit. This structure offers more flexibility and potentially lower costs, about $200 less per monthly prescription after rebates, says Fair.

This model allows employers to customize their contribution levels, perhaps covering 25, 50, or 75% of medication costs. By guaranteeing medication delivery within five days through specialty pharmacy networks, access issues that plague traditional distribution channels are directly addressed.

Noom reports a 4.1 fold return on investment over two years when implementing comprehensive healthcare approaches, achieved through careful patient selection, early identification of non-responders, and supporting appropriate candidates in tapering off medications.

Unlike providers who assume indefinite GLP-1 use, Noom has developed protocols that help suitable candidates successfully transition off these expensive medications. Jones reported that approximately 30 to 35% of patients, particularly those experiencing situational weight gain, can maintain their weight loss after tapering, when given proper support.

“I don’t know a lot of people, honestly, that want to be on medication for the rest of their life,” Jones said. Through Noom's four-month tapering protocols and continued access to coaching, nutrition guidance, and exercise programs, patients are 1.6 times more likely to successfully maintain their weight without medication compared to those who stop abruptly, Jones says. This approach not only addresses patient preferences but significantly reduces long term costs for employers.

As more GLP-1 medications approach market approval, including oral formulations that could broaden access for injection-averse patients, employers must develop sustainable strategies. The speakers emphasized that successful programs require more than just coverage decisions, they demand comprehensive approaches that treat obesity as the complex chronic condition it is. As these medications reshape the landscape of workplace health benefits, the challenge isn’t simply whether to provide coverage, but how to do so in ways that deliver lasting value for both employees and organizations.

Editor’s note: From Day One thanks our partner, Noom, for sponsoring this webinar. 

Chris O’Keeffe is a freelance writer with experience across industries. As the founder and creative director of OK Creative: The Language Agency, he has led strategy and storytelling for organizations like MIT, Amazon, and Cirque du Soleil, bringing their stories to life through established and emerging media.

(Photo by Alones Creative/iStock)