Employers rethink healthcare benefits as weight-loss drugs reshape workplace provision

"UK employers are being forced to reassess their healthcare and benefits strategies as demand for weight-management drugs surges among employees, according to new research. More than a quarter of UK workers have already used a weight-management drug such as Ozempic, while two in five believe their employer should fund access to these treatments through workplace healthcare plans. As a result, 44 per cent of employers say they are now reviewing, or fundamentally redesigning, their healthcare provision."

"The findings come from the Changing Face of Employee Health report by Howden Employee Benefits, which suggests that blockbuster GLP-1 drugs are becoming a defining issue in the future of workplace health. Despite the rising pressure from staff, employers are caught in a financial bind. Almost nine in ten businesses say they are currently satisfied with the return on investment from their healthcare plans, yet half of those already covering weight-management drugs now see them as a growing cost concern."

"While only 5 per cent of employers expect these costs to ease next year, many acknowledge the long-term trade-off. Weight-related illnesses such as diabetes contribute significantly to sickness absence and lost productivity. Around 72 per cent of UK employers are already investing in preventative health measures, and some see controlled access to weight-management drugs as a way to reduce longer-term health risks and associated business costs."

More than a quarter of UK workers have used GLP-1 weight-management drugs such as Ozempic, and two in five employees believe employers should fund access through workplace healthcare plans. Forty-four per cent of employers are reviewing or redesigning healthcare provision in response. Almost nine in ten businesses report satisfaction with healthcare plan ROI, yet half of those covering weight drugs view them as a growing cost concern and nearly half expect costs to rise. Only five per cent expect costs to ease next year. Weight-related illnesses drive sickness absence and lost productivity, and around 72 per cent of employers invest in preventative measures while weighing controlled access to drugs to reduce long-term risks amid rising medical and general inflation.

Read at Business Matters