As GLP-1 weight-loss medications gain in popularity, WEX Inc. is rolling out a tool that aims to help employers manage and control the escalating costs of those medications for employees.
The Portland-based provider of financial technology services said that its solution enables workplaces to carve out GLP-1 coverage into a defined-contribution Health Reimbursement Arrangement, or HRA.
That puts the power back to the employer by helping protect its core medical plan from unpredictable use and premium inflation, WEX said in its announcement.
By customizing everything from funding to reimbursement rules, employers gain clarity and control over pricing, while ensuring their employees have a reliable health safety net, the company said.
Reducing risks for employers
Once a niche treatment for Type 2 diabetes, GLP-1 drugs have become a mainstream, high-demand option for weight loss.
According to one health management trade publication, GLP-1 drugs like Ozempic, Wegovy, and others are now available across a wide cash-pay range, from roughly $150 to $450 per month, depending on drug, dosage and format.
With nearly 34 million Americans eligible for the drugs, WEX says employers are being pushed to rethink their workplace health and wellness strategies.
“With this new HRA offering from WEX, we tackle one of the most complex challenges in the healthcare ecosystem: How to balance fiscal sustainability and employee well-being amidst skyrocketing drug costs,” said Robert Deshaies, WEX’s chief operating officer for benefits.
“By helping to reduce risk for the employer through this defined-contribution model, we enable organizations to provide easier access for employees to manage their physical health as well as their financial health,’ he added.
Last month, WEX posted fourth-quarter earnings and revenue that surpassed market expectations and issued initial full-year financial guidance, with bullish comments from CEO Melissa Smith on sustainable growth and profitability momentum.
As of Wednesday’s close on Wall Street, WEX shares have a market value of around $5.2 billion. Shares are trading 0.92% than a year ago.
