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Bank of America is allocating over $250 million annually to cover GLP-1 weight loss medications for its employees, according to CEO Brian Moynihan. The expenditure represents a dramatic increase from virtually nothing just five years ago and now comprises approximately 13% of the company’s total healthcare spending for its roughly 211,000 workers.
Moynihan characterized the substantial investment as justified, pointing to both immediate and long-term health benefits for employees. The bank pairs drug access with health coaching services and has observed positive outcomes including weight loss and reduced cardiovascular incidents. He acknowledged that some employees may depart before the company realizes long-term savings but maintained that providing such coverage aligns with offering competitive benefits.
The decision reflects broader industry challenges surrounding GLP-1 drugs like Ozempic and Wegovy, which carry significant annual costs per patient. Bank of America leverages its size to negotiate reduced prices with drugmakers and pharmacy benefit managers. A recent survey found that 36% of employers now cover GLP-1 medications, though cost remains a critical factor in coverage decisions as these drugs account for roughly 11% of annual claims.
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