Bank of America is spending more than $250 million a year on GLP-1 medications covered under its employee health benefits, highlighting the growing cost of weight-loss drugs for large employers in the US.
It is reported that he bank’s annual healthcare spending exceeds $2 billion for a workforce of around 211,000 employees. Based on figures shared by CEO Brian Moynihan, GLP-1 medicines now account for roughly 13 per cent of the company’s total healthcare expenditure. The spending has risen sharply from virtually zero four to five years ago.
The increase reflects the rapid adoption of medicines such as Ozempic and Wegovy, which have gained popularity for their effectiveness in managing weight and, in some cases, diabetes. Their high cost has become a growing concern for employers that provide comprehensive health insurance to their workforce.
Despite the financial burden, Bank of America considers the benefit a worthwhile investment in employees. The company also combines access to the medicines with health coaching, helping employees manage their weight and make accompanying lifestyle changes.
The bank, however, may not immediately benefit from any reduction in future healthcare costs, particularly if employees leave before the longer-term health effects of the treatment translate into lower medical spending. Nevertheless, it has continued to support coverage as part of its broader employee benefits strategy.
The issue is becoming increasingly important for employers across the US. According to a July 2026 survey by the International Foundation of Employee Benefit Plans, 36 per cent of employers now cover GLP-1 drugs for both diabetes and weight loss. The figure is marginally higher than 34 per cent in 2024 and remains at the same level as 2025.
At the same time, GLP-1 medicines are taking up a growing share of employer healthcare budgets. Survey respondents reported that the drugs represented 11.4 per cent of annual healthcare claims in 2026, compared with 6.9 per cent in 2023.
With demand continuing to rise, employers are increasingly weighing the potential long-term health benefits of GLP-1 coverage against its immediate impact on healthcare costs.
