• 93% of global businesses cover weight-management drugs in their healthcare plans
  • 65% view drugs such as Ozempic as a cost concern

Mumbai : The rising demand for obesity-related drugs, such as Ozempic, is creating a significant and growing financial burden on employee benefit plans for a majority of global businesses, according to the Changing Face of Employee Health report from Howden Employee Benefits.

93% of global companies currently cover weight management drugs in their employee health insurance plans, which means the vast majority of employers are seeing a direct impact on their costs and premiums. The research reveals that nearly two thirds (65%) of businesses who cover weight-management drugs view them as a cost concern, which is having an impact on their employee benefit provisions. 62% expect the costs to grow, while only 5% are expecting to see a reduction in outlay for obesity-related drugs.

Over one in five (22%) businesses already list obesity related conditions and the associated treatments, such as Ozempic, as the most prominent factor driving their costs up. As weight-management products become increasingly popular, and 92% of businesses anticipate rising medical costs across the board, this is a major consideration. As a result, 43% of employers are having to redesign their healthcare plans to ensure they meet the evolving needs of employees – and 67% are investing in prevention and wellbeing to try and mitigate health issues.

Though medical inflation and rising prices will prove tricky to navigate, shaking up healthcare plans to meet employee demands is vital for businesses. Howden’s research emphasises the potential costs in failing to do so. 74% of employers believe a good healthcare plan is key to staff retention, and more than half (54%) agree that it is an important factor in attracting talent. 63% also believe a competitive healthcare plan maximises productivity – demonstrating the potential negative impact for employers who don’t address the needs of their workforce effectively, or cover in-demand elements such as weight-management drugs.

Leigh Dauncey, Regional Employee Benefits Leader for Middle East, Africa and India (IMEA) commented: “The financial impact of new obesity and weight management medications is now a live issue for employers across India and the wider region. These treatments are moving quickly from emerging trend to mainstream benefit consideration, which is driving important conversations around plan design, affordability and long-term sustainability.”

“These medications are delivering real health outcomes for employees, and demand is rising fast. At the same time, employers across the region are navigating increasing medical inflation and pressure on benefit budgets. Balancing employee expectations with cost control is becoming a central challenge, particularly as healthcare costs continue to rise year on year.”

“We are seeing a growing focus on prevention, early intervention and wellbeing strategies as employers look for sustainable ways to manage health risks over the long term. Investing earlier in employee health supports better outcomes and helps organisations stay ahead of escalating costs while continuing to offer benefits that attract and retain talent.”

Neeran Choudhary, Head Employee Benefits, Howden (India) says, “Across India, weight loss drugs have moved from headlines to households, from metro hospitals to tier 2 clinics, hence the demand is undeniable. But so is the budget impact. Our task is to balance access with affordability: clear eligibility, real world outcomes tracking, and integration with nutrition, mental health and disease management. We will evolve plan design responsibly to meet coverage expectations while protecting sustainable benefits.”