Eli Lilly launched a new program Thursday to help more employers cover the cost of obesity medications in the U.S., addressing a major barrier to access for patients.
Lilly and her main rival, Novo Nordiskhave decided to reduce the cash prices of their popular obesity shots for those who want to pay entirely out of pocket. However, because of high costs, employer coverage for obesity medications remains inconsistent, leaving about half of people with commercial insurance unable to start or continue treatment, Lilly said in a news release. List prices for Lilly’s weight loss and diabetes treatments Zepbound and Mounjaro are over $1,000 per month.
According to a survey by the Peterson-KFF Health System Tracker, nearly a fifth of companies with more than 200 employees, including 43% with 5,000 or more employees, said they will cover GLP-1 weight loss drugs as of October.
“I think we’ll learn in the coming months whether this is a solution that might allow some employers who have sat idly by to choose to provide obesity insurance for their employees,” Kevin Hern, senior vice president of Lilly Employer, said in an interview. He added that some employers may choose to add coverage in the coming months, while others may wait until 2027.
Eli Lilly’s new Employer Connect platform offers employers more flexibility when financing obesity treatment. The aim is to make it easier for employees to access medication at low out-of-pocket costs and at the same time limit costs for companies. Hern said The program addresses some of the “core tensions” for employers when it comes to obesity drug coverage, including transparency in drug pricing, flexibility in benefit design and the ability to choose between independent administrators.
Through the program, employers can pay a discounted net price of $449 per month for a new multi-dose form of Zepbound across all doses, Hern said. He added that the agreement does not provide for discounts and that the net price gives employers a clearer view of whether they can offer the drug.
Instead of relying on traditional benefit approaches, employers can use Lilly’s platform to connect with more than a dozen different third-party program administrators who help manage the benefits and costs of obesity treatment.
“Every employer is different. They all want to do things according to their individual needs and their workforce,” Hern said.
Employers can choose from more than 15 administrators to design benefits that fit their budget and employee needs. Some of the administrators may focus on managing employee obesity benefits, handling core functions such as enrollment, eligibility, claims, and more. Other administrators may specialize in comprehensive obesity treatment, providing patients with telemedicine, nutrition, and lifestyle support.
Lilly plans to expand the number of program administrators on the platform. The administrators already on the platform are GoodRx, Mark Cuban’s Cost Plus Drug Co., Sesame, Teladoc Health, 9amHealth, Andel, Calibrate Health, Crux Health, eMed, FlyteHealth, Form Health, Goodpath, Ilant Health, Onsera Health, ReviveHealth, Salta Direct Primary Care, Transcarent and Waltz Health.
“Our goal was to create some sort of platform where these companies could compete on the value of their services to employers,” Hern said. All administrators offer the same drugs at the same price, so employers decide “who can provide me with the best service in administering this program, as I define it.”
Those with federal insurance could also see easier access to obesity medications: Under groundbreaking deals Lilly and Novo reached with President Donald Trump, Medicare will cover these drugs for the first time later this year.
