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As GLP-1 medications transform diabetes and weight management, plan sponsors must navigate emerging trends and rising costs to optimize healthcare plans for their workforce

GLP-1 (glucagon-like peptide-1) medications are effective and versatile, marking a significant advancement in treatment options for type 2 diabetes and gaining attention for their potential in weight management and even cardiovascular health. Currently under study for additional indications, and with an expected expansion of uses in the future, these revolutionary medications will make a crucial impact on the healthcare industry . Christine Than, pharmacy lead at Aon, urges plan sponsors to closely monitor developments and prepare to adjust their plan designs accordingly.

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“GLP-1s are the new frontier, and they’re not going away. These changes are here to stay, so keep on top of them. Don’t ignore this major shift: now’s the time to prepare”

Christine Than, Aon

In contrast to prior dietary interventions, GLP-1 receptor agonists emerged as a genuinely disruptive therapy. Through coordinated effects on insulin production, glycemic control, and appetite regulation, they consistently deliver pronounced weight loss. The clinical significance of GLP-1s extends well beyond the scale, however, with mounting evidence of benefits across multiple health domains. This recognition has spurred a marked escalation in both medical and consumer interest. Aon conducted a forecast for the trend in GLP-1 medication spending, projecting a notable increase in 2026 for Canadian group benefits plans. The anticipated trend in total drug spend, attributed to the GLP-1 spend alone, is estimated to be between 2.5 and 3.75 percent − contingent on the terms of coverage, such as prior authorization requirements and maximums. This forecast includes both diabetes drugs and weight management medications, reflecting the broad scope of application for GLP-1s, and does not include the impact of other drug therapies. Indicators of this shift are already on the rise. There’s the introduction of generic Ozempic slated for 2026, pending any legal challenges; and Zepbound came to Canada in July 2025. A rival to Wegovy with reportedly even better weight loss results, Zepbound is also significantly more expensive. While Wegovy rings in between $5,000 and $6,000 a year, Zepbound − depending on dosage − can cost up to $11,000. These newcomers are likely to influence market dynamics and accessibility. Than highlights a noticeable increase in the number of claims related to these medications among Aon’s clients, a surge in interest that underscores the effectiveness and growing demand for GLP-1s as a treatment option. “What we’re seeing is a testament, if you will, to the effectiveness of these medications,” Than notes, adding that with interest growing, plan sponsors should remain vigilant and proactive as the situation continues to unfold.

A recent study saw Aon’s US counterpart examine medical claims data − such as pharmacy costs, physician visits, and lab work − from over 50 million individuals from the US working population. Narrowing it down to 139,000 GLP-1 users (Ozempic, Mounjaro, and Wegovy), that test group was compared against a control group whose members had all the same characteristics, such as gender split and comorbidities, but didn’t take GLP-1 medication. Over 24 months, the researchers made two main observations. The first was the bending of the curve of the medical trend for the GLP-1 arm. Meaning, essentially, that there was a cost increase but not as steep as the one found in the control arm. The second observation was a marked decrease in major cardiovascular events. The study showed a drop of 44 percent in hospitalization due to heart attacks and strokes.

For now, here at home, the projected increase in drug spending highlights the need for careful consideration of plan design and coverage options. By staying informed about these trends, including the potential impact of generic options, plan sponsors can ensure they are providing effective and comprehensive healthcare solutions for their members. Assessing clinical benefits as well as increasing costs is one thing, but there’s much more at stake than the GLP-1 side of the equation. From mental health support and disability costs to coverage for rare disease drugs, for plan sponsors, “a multitude of priorities hang in the balance when making decisions about plan design or redesign,” Than notes. “Every employer’s reality is a bit different,” she adds. “Lean on advisors and insurance carriers to understand the process, from the conditions required for coverage of GLP-1 to claims payment, and decode the data behind each. Then adjust as you see fit.”

Importantly, employers aligned with experts on all things benefit plans don’t have to grapple with the unknowns on their own. Than and her team not only help clients better understand shifts in the market; they also provide guidance on everything from looming legislative changes to new pharmacy practice obligations. Partnering with Aon’s advisors, plan sponsor clients receive the support they need to ensure they’re effectively and efficiently managing their drug plans, and ultimately making coverage decisions that make sense for them and the employees under their care.

“Lean on advisors and insurance carriers to understand the process, from the conditions required for coverage of GLP-1 to claims payment, and decode the data behind each. Then adjust as you see fit”

CHristine than, aon

Emerging trends: a growing focus on diabetes and weight management

US study shows lower costs, fewer heart events for GLP-1 users

Published Sep 29, 2025

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GLP-1 medication spending forecast

Between 2.5% and 3.75%

on the total drug spend in 2026

A balancing act: it’s not all about cost

Employers don’t have to go it alone

“GLP-1s are the new frontier, and they’re not going away,” Than notes. “These changes are here to stay, so keep on top of them. Don’t ignore this major shift: now’s the time to prepare.”

The research results can’t translate seamlessly to Canada. For example, hospitalization and ER visit costs, which employers here don’t pay for, were measured, while things like disability data, which would be interesting to employers north of the border, weren’t available. Than stresses that while the return on investment for GLP-1 drugs for employers in Canada is not yet proven, the study is ongoing. She also notes that while claimants for Wegovy, a drug approved for weight loss, are included in the GLP-1 arm, the study aims to measure the impact of all GLP-1s (approved for either diabetes or weight management) on employer-sponsored medical costs and plan member health outcomes.

“It’s too early to tell what this means for Canadian employers, but this is just the first set of results,” she explains. “As the months go by, we’ll see more data to apply to the Canadian market, but it looks very promising, generally speaking.” There’s also the use of virtual chronic disease management options, which – though not directly assessed in this study − are widely available in the US while Canada is playing catch up. Such online programs provide guidance on users’ diet, exercise, mental health, and stress management. These virtual means of support for the lifestyle portion of the journey can only help by enhancing and maintaining weight loss outcomes and by improving adherence to treatment. “It’s not the interest for these programs in Canada that’s lacking; it’s the offering,” Than says. “When we talk to the insurers, you hear that they’re developing these things with vendor partners. It’s something we’re seeing a bit more of.”

Zepbound

up to $11,000 per year

Market newcomers impact affordability

$5,000−$6,000 per year

Wegovy

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