Staff
Nearly two-fifths (37 per cent) of Canadian employers cover glucagon-like peptide-1 therapies for both diabetes and weight loss, up from 31 per cent in 2025 and just 17 per cent in 2024, according to a new survey by the International Foundation of Employee Benefit Plans
It found half (51 per cent) of employers said they cover the medications only for diabetes, down from 56 per cent last year and 66 per cent in 2024. A tenth (12 per cent) said they cover the drugs for other approved conditions, including sleep apnea and cardiovascular disease
Read: Expanded use of GLP-1s a major driver of drug plan costs in 2026: report
Among employers offering weight-loss coverage, the vast majority (85 per cent) said they offer the medications through their prescription drug plan, while 12 per cent provide access through a dedicated weight-management vendor and just four per cent use a supplemental drug rider
“Coverage of GLP-1 drugs for weight loss in Canada continues to rise,” said Carey Wooton, associate vice-president of education at the IFEBP, in a press release. “Employers remain tasked with meeting employee demand while mitigating rising costs.”
Many employers are also taking a broader approach to weight management. More than half (54 per cent) said they cover nutritional counselling, while 43 per cent said they cover other prescription medications. Nearly a quarter (24 per cent) said they offer <a href="https://healthylife7.com/insider-at-the-wolf-of-wall-street-firm-opens-up-my-lifestyle-was-insane/” title=”Insider at "The Wolf of Wall Street" firm opens up: "My lifestyle was insane"”>lifestyle modification programs and 21 per cent provide disease-, case- or chronic-care management
For employers that don’t currently cover GLP-1 drugs for weight loss, the landscape may continue to shift. The survey found 17 per cent said they’re considering adding the benefit, while 73 per cent said they currently exclude coverage through a carve-out in their medical and/or prescription drug plan. Fifteen per cent said they encourage employees to use a health-care spending account to pay for the medications and two per cent said they direct employees to obtain them through a direct-to-consumer platform.
Read: Weight management drugs, rare disease treatments expected to drive private drug plan costs in 2026: report
When deciding whether to cover GLP-1 drugs for weight loss, employers said their biggest consideration is obesity as a risk factor for chronic disease and its associated costs (53 per cent). They also cited long-term costs and the difficulty of measuring outcomes (38 per cent), the impact of cost-control measures on health insurance premiums (38 per cent), medication adherence (25 per cent), immediate costs (25 per cent) and recommendations from brokers, consultants and pharmacy benefit managers (25 per cent).
