Authors: Amy Earhart-Connell Angela Garcia
Glucagon-Like Peptide-1 (GLP-1) receptor agonists have emerged as transformative treatments for type 2 diabetes and, increasingly, for obesity management. Following high-profile product launches such as Ozempic, Wegovy and Mounjaro, plan sponsors and reinsurers alike have seen a marked uptick in prescription spend on these medications. In parallel, questions about the long-term medical cost implications — both positive and negative — have intensified.
By synthesizing current research, survey responses from carriers, and early market data, this whitepaper aims to provide a clearer understanding of how GLP-1 therapies may influence medical trends, underwriting, and claim severity in both the near and long term.
This whitepaper delves into the potential risks and implications for payers and employers arising from the increasing use of GLP-1 therapies, beyond the headlines. It highlights the importance of understanding the facts, as these therapies could impact both specific high-excess claims and aggregate stop-loss coverage. While there is initial evidence of significant improvements in obesity-related comorbidities, the immediate effects on claims cost and risk are still uncertain.
