Analysis of Employer Coverage for GLP-1 Drugs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Newsfilter
- Current Coverage Status: According to a survey by the International Foundation of Employee Benefit Plans, approximately 36% of employers provide coverage for GLP-1 drugs for both diabetes and weight loss, which is unchanged from 2025 but up from 34% in 2024, indicating a conservative approach towards weight loss drug coverage.
- Significant Cost Pressure: GLP-1 drugs accounted for 11.4% of annual claims in 2026, a substantial increase from 6.9% in 2023, highlighting that high drug costs are making employers more cautious in their coverage decisions, with many plans restricting or halting coverage altogether.
- Alternative Support Measures: About 27% of employers encourage employees to obtain GLP-1s through direct-to-consumer platforms, while 21% are pushing workers to use FSA, HSA, or integrated HRA funds, reflecting employers' search for alternative ways to support employee health in a high-cost environment.
- Future Coverage Potential: Although only 9% of employers are considering coverage for obesity with GLP-1s, if future evidence shows that these drugs can reduce costs in other areas, employers may reassess their coverage strategies, potentially leading to broader adoption.
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Wall Street analysts forecast LLY stock price to fall
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Current: 1215.830
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Averages
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About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, and market products in a single business segment called human pharmaceutical products. The Company manufacture and distribute its products through facilities in the United States, including Puerto Rico, and in Europe and Asia. The Company’s products are sold in approximately 90 countries. Its Cardiometabolic Health products Basaglar; Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, and others; Humulin, Humulin 70/30, and others; Jardiance; Mounjaro; Trulicity; Zepbound, and others. Its oncology products include Cyramza, Erbitux, Tyvyt, Verzenio, Retevmo, Jaypirca, and others. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. Its LillyDirect, a direct-to-patient digital health care platform, provides delivery of select Lilly medicines dispensed by third-party pharmacies to patients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Enhanced Diagnostic Performance: Research indicates that P-tau217 blood biomarker assays demonstrate strong performance in identifying Alzheimer's disease pathology in cognitively unimpaired individuals, providing a scalable and accessible alternative that may transform future diagnostic approaches and improve early intervention opportunities for patients.
- Advancements in Scientific Methodology: Eli Lilly will explore the comparison of external controls versus internal extrapolation in the TRAILBLAZER-ALZ 2 long-term extension study, emphasizing scientific rigor, which will help enhance the credibility of clinical trial outcomes and further solidify the company's leadership in Alzheimer's research.
- Long-Term Commitment: The conference showcases Eli Lilly's 35-year commitment to Alzheimer's disease science, reflecting its ongoing efforts to advance understanding and treatment innovations, which may bolster investor confidence in the company's future growth.
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- Significant Usage Increase: Gallup's survey indicates that 11% of U.S. adults are currently using GLP-1 medications for weight loss, a substantial rise from 3% in 2024, reflecting a sharp increase in market demand that could drive sales for related companies.
- Record Sales Figures: Eli Lilly reported combined sales of $12.9 billion for Mounjaro and Zepbound in Q1, contributing to a total revenue of $19.8 billion, which is a 56% year-over-year increase, showcasing its strong performance and growing market share in the GLP-1 sector.
- New Drug Approval Boosts Growth: Lilly's new oral weight loss drug, Foundayo, was approved and became available in early April, likely attracting more consumers and further boosting GLP-1 drug sales, especially among those less comfortable with injectable options.
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- International Sales Surge: Eli Lilly's international GLP-1 sales exceeded $4.8 billion in 2025, showing significant growth compared to last year, which is expected to further boost the company's overall performance.
- Market Share Increase: As of Q1 2026, Lilly holds a 53% share of the international GLP-1 market and a 60% share in the U.S., indicating the company's growing competitiveness on a global scale.
- Analyst Optimism: Both JPMorgan and RBC Capital Markets raised their price targets for Lilly, with JPMorgan increasing from $1,300 to $1,400 and RBC from $1,250 to $1,500, reflecting strong market confidence in its future performance.
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See More
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See More
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- Enhanced Diagnostic Performance: Research indicates that P-tau217 blood biomarker assays demonstrate strong rule-in performance comparable to amyloid PET for identifying Alzheimer's disease pathology in cognitively unimpaired individuals, providing support for a potentially scalable and accessible alternative for early diagnosis in the future.
- Advancements in Scientific Methodology: Dr. Lars Raket from Eli Lilly will discuss the comparison of external controls versus internal extrapolation at the conference, highlighting the importance of measuring and interpreting long-term outcomes in Alzheimer's clinical trials, further solidifying the company's commitment to scientific rigor.
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