GLP-1 drugs for employees cost $250M a year

Bank of America spends more than $250 million a year covering GLP-1 weight loss drugs for its employees, CEO Brian Moynihan told CNBC on Wednesday, saying the rapidly rising cost is a worthwhile investment in his workforce.

The company sets aside more than $2 billion a year on healthcare overall for BofA’s roughly 211,000 employees, meaning that GLP-1 medications alone now account for roughly 13% of all healthcare spending, per figures provided by Moynihan.

“We spend about $250 million or more on GLPs, and that’s up from zero” four or five years ago, Moynihan told CNBC’s Andrew Ross Sorkin. “We see a great impact on the employees.”

Employers across the country have grappled with soaring demand for GLP-1 drugs such as Ozempic and Wegovy, which can cost thousands of dollars per patient annually. Many self-insured companies and public employers have restricted coverage or debated whether they can afford the treatments as utilization has climbed.

Moynihan acknowledged that some employees may leave Bank of America before the company realizes the long-term savings from improved health, but he said the decision ultimately reflects a push to provide valuable benefits.

Bank of America pairs access to the drugs with health coaching to help monitor weight loss and lifestyle adjustments, the CEO said. Beyond long-term preventative health, Moynihan pointed to emerging clinical data suggesting nearer-term benefits, including a lower incidence of cardiovascular events.

“It’s been fascinating to watch our teammates’ behavior on these adjustments — the loss of weight,” he said.

The nation’s second-largest lender by assets is also using its size to negotiate lower prices from drugmakers and pharmacy benefit managers, he said.

“Believe me, we’re pounding everybody on price and trying to get as cheap [as possible],” Moynihan said. “But our view is that [because of] the long-term health benefits, plus there may be more short-term health benefits … it’s a good investment.”