The Rise of Virtual Care in Tackling Obesity: A Proactive Approach by U.S. Employers

By
Ayanna Amadi

As healthcare costs associated with obesity surge, U.S. employers are taking a proactive stance by turning to virtual healthcare providers like Teladoc and AmWell. The goal? To implement weight management programs that require diet and exercise before employees can gain access to obesity drugs. This trend not only reflects a proactive approach by employers to address the impact of obesity on healthcare costs but also underscores the growing influence of telemedicine in addressing chronic health issues.
Understanding the Market Dynamics

According to market projections, the virtual obesity drug management sector is anticipated to reach a worth of $700M in 2024 before hitting a staggering $9B over the long haul. There is evidence of strategic collaboration in this space, such as the partnership between virtual healthcare provider LifeMD and weight-loss company Medifast. This collaboration further underscores the growing recognition of the role that virtual care can play in managing obesity.
The Role of Virtual Care in Managing Obesity Drug Costs

Obesity drugs can be incredibly costly. Medications like Wegovy and Eli Lilly’s rival therapy Zepbound have list prices of over $1,000 a month. To manage these surging costs, employers are hiring virtual healthcare providers to implement weight-loss management programs. These programs may necessitate diet and exercise before granting access to these medicines. In some cases, these programs will become an employee’s sole covered option for obesity medications.
Access and Affordability of Prescription Drugs: A Top Priority

In 2023, prescription drug access and affordability emerged as top priorities in state legislation. Major trends included pharmacy benefit manager reforms, efforts to lower patient costs, and measures to curb high drug prices. Some patients with type 2 diabetes encountered difficulties in getting reimbursed for drugs like Ozempic as insurers implemented restrictions to deter doctors from prescribing it for weight loss. This highlights the growing need for efficient and cost-effective solutions like virtual care in managing weight loss and obesity.
Employer Trends and Employee Benefits

Nearly half of the organizations surveyed reported automatically enrolling eligible employees in Health Savings Accounts (HSA), and the number of employers using a default or suggested savings rate to encourage greater account funding has increased. However, contributing to an HSA after age 65 can be complex due to specific rules around HSAs and Medicare. This introduces an additional layer of planning once an individual crosses the age 65 threshold. It’s worth noting that various organizations have launched new programs and plans related to employee benefits, retirement savings opportunities, and mental health parity in disability insurance.
Conclusion

The shift towards virtual healthcare solutions is a clear reflection of the growing influence of telemedicine in addressing chronic health issues like obesity. The proactive approach by employers in implementing virtual weight management programs not only helps manage surging obesity drug costs but also contributes to the overall well-being of their employees. In the face of rising healthcare costs and an increasingly digital world, the role of virtual care providers will only continue to grow in importance.