Cutting GLP-1 Drug Coverage May Increase Company Costs
A new study suggests that dropping coverage for weight-loss drugs like Ozempic could lead to lost productivity costs of up to $866 per worker annually.
Employers reconsidering coverage for GLP-1 drugs, popular for weight loss, may face higher costs than anticipated, according to new research from the National Bureau of Economic Research (NBER).
The study, which analyzed data from Denmark, found that treatment with GLP-1 medications reduced long-term sickness leave by 17.3 percent. This effect strengthened over time and was associated with fewer emergency visits and reduced use of cardiovascular medications, indicating sustained health improvements.
These health benefits translate into increased employee presence and productivity. The NBER analysis estimates that the reduction in sickness absence and improved productivity could yield an annual economic benefit of approximately $866 per worker for companies.
The article notes that differences in Danish labor regulations and public healthcare systems compared to the U.S. could influence the magnitude of these savings. Denmark's extensive paid sick leave policies highlight the cost of employee absence, while its public system covers a portion of treatment expenses.