Bank of America spends over $250 million yearly on GLP-1 drugs

Coverage of obesity drugs now accounts for about 13% of the bank's healthcare bill as employers weigh whether benefits from Ozempic, Wegovy and Zepbound justify rising claims costs.

Summary

Bank of America is spending more than $250 million a year on GLP-1 drugs for employees, up from zero four or five years ago, and CEO Brian Moynihan said the lender sees the fast-growing cost as a worthwhile investment in workforce health and productivity. The bank spends more than $2 billion annually on healthcare for roughly 211,000 employees, putting GLP-1 coverage at about 13% of that total, and pairs the benefit with health coaching while pressing drugmakers and pharmacy benefit managers for lower prices. Moynihan said evidence that the drugs can reduce cardiovascular events helps justify the expense even if some workers leave before the bank captures the full long-term savings. The decision comes as employers weigh rising demand for obesity treatments such as Ozempic, Wegovy and Zepbound: a June survey by the International Foundation of Employee Benefit Plans found 36% of nearly 300 U.S. employer health plans cover GLP-1 medicines for both diabetes and weight loss, while Eli Lilly and Novo Nordisk are pushing programs to widen coverage.

Terms & Concepts
  • GLP-1 drugs: Medicines that mimic a hormone involved in appetite and blood-sugar control and are used in diabetes and obesity treatment.
  • pharmacy benefit managers: Companies that manage prescription drug benefits and negotiate prices and rebates on behalf of health plans and employers.
  • health coaching: Structured support that helps patients manage behavior changes such as diet, exercise and treatment adherence.