Employers Boost Health Benefits: Weight-Loss Drugs and IVF in 2024

Despite rising health costs, employers are enhancing their benefits packages to include weight-loss medications and in vitro fertilization (IVF), according to Mercer's 2024 National Survey of Employer-Sponsored Health Plans. This move reflects a growing trend of employers prioritizing employee well-being and addressing health disparities.

The average per-employee cost of employer-sponsored health insurance reached $16,501 in 2024, a 5% increase from the previous year. Employers anticipate a further 6% increase in 2025. While prescription drug costs, particularly GLP-1 medications for diabetes and weight loss, are a significant driver of overall health benefit cost, employers are managing these expenses through clinical management programs and authorization requirements.

In 2024, 44% of large employers covered obesity drugs, up from 41% in 2023. Of the largest employers, 64% now offer coverage, up sharply from 56% in 2023. This trend reflects employers' recognition of the potential long-term savings associated with improved health outcomes and increased productivity. Mercer estimates that employers can save $2,000-$3,000 per employee annually through reduced chronic diseases and absenteeism (Mercer, 2021).



IVF coverage is also becoming more common, with 47% of all large employers now covering the procedure, up from 45% last year. Most large employers offering fertility benefits (64%) intend for them to be inclusive, meaning eligibility is not limited to those meeting the clinical definition of infertile. This shift in employer priorities aligns with the growing demand for comprehensive, inclusive benefits that cater to employees' diverse needs.

Employers are balancing cost management with enhancing employee benefits by adopting innovative strategies. These include offering more medical plan choices, promoting higher quality care through specialized health navigation services, and providing Exclusive Provider Organization (EPO) plans with closed provider networks to keep costs down.

In conclusion, employers are investing in their employees' health and well-being by expanding coverage for weight-loss medications and IVF, despite growing health costs. This trend reflects a commitment to enhancing overall health and retirement outcomes, as well as addressing health disparities. By doing so, employers can attract and retain top talent, boost employee satisfaction and productivity, and potentially save on healthcare costs in the long run.