Bank of America says it is negotiating better deals with drug manufacturers and pharmacy benefit managers to control costs while continuing to offer the benefit|Mike Mozart|CC BY 2.0
Bank of America is standing by its decision to cover expensive weight-loss drugs for employees, saying the health benefits outweigh the rising costs.
CEO Brian Moynihan revealed that the bank now spends more than $250 million annually to cover GLP-1 medications for employees with prescriptions across its 211,000-person workforce—about 13% of its $2 billion-plus healthcare budget.
Just a few years ago, the company spent almost nothing on these drugs.
Despite the growing expense, Moynihan believes the program improves employee health and productivity. The bank also provides health coaching alongside the medications to help employees maintain healthy habits and achieve lasting results.
Many employers have reduced or restricted coverage of GLP-1 drugs because of their high price. However, Bank of America says it is negotiating better deals with drug manufacturers and pharmacy benefit managers to control costs while continuing to offer the benefit.
Industry data shows only 36% of employers currently cover GLP-1 drugs for both diabetes and weight management.
Meanwhile, drugmakers Eli Lilly and Novo Nordisk are working to convince more companies that expanding coverage can improve employee health and reduce long-term medical costs.