Bank of America Corp (BAC  ) allocates millions each year to provide GLP-1 obesity medications for employees, with CEO Brian Moynihan calling it an investment in workforce health and productivity. "We spend about $250 million or more on GLPs, and that's up from zero" four or five years ago, the CEO told CNBC on Wednesday. "We see a great impact on the employees," he added.

The bank spends more than $2 billion annually on employee healthcare, with GLP-1 medications accounting for about 13% of that total. It combines GLP-1 medication coverage with health coaching to support weight management and lifestyle changes. Moynihan also highlighted growing evidence that the drugs may reduce the risk of cardiovascular events.

Moynihan said Bank of America may not fully recoup the long-term health benefits if employees leave, but the company continues to offer the coverage as part of its commitment to employee benefits.

Moynihan said Bank of America is leveraging its scale to negotiate lower prices with drugmakers and pharmacy benefit managers (PBMs), while maintaining that coverage of GLP-1 medications delivers enough health benefits to justify the expense.

"...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," said the CEO.

Lilly, Novo Target Employers

A June survey by the International Foundation of Employee Benefit Plans (IFEBP) of nearly 300 U.S. employer health plans found that 36% cover GLP-1 drugs such as Novo Nordisk A/S's (NVO  ) Ozempic and Wegovy, for both diabetes and weight loss, unchanged from 2025, while 60% provide coverage for diabetes only, up from 55% a year earlier. About 45% also cover the drugs for other approved conditions, including heart disease and obstructive sleep apnea.

The organization said that the cost remains the biggest factor shaping employers' decisions on GLP-1 coverage, with the drugs' share of annual claims rising from 6.9% in 2023 to 11.4% in 2026.

Eli Lilly and Co. (LLY  ) and Novo Nordisk are expanding efforts to increase employer insurance coverage for obesity drugs, as out-of-pocket costs-often several hundred dollars per month-even at discounted prices, remain too expensive for many patients.

In March, Eli Lilly introduced a program that lets employers offer Zepbound at a discounted net price of $449 per month, giving them greater flexibility in designing employee coverage for the weight-loss drug.

Notably, a Deloitte report in May warned that surging demand for GLP-1 weight-loss and diabetes drugs has created a potential "bubble effect" in the pharmaceutical industry. Obesity treatments now account for 25% of projected late-stage pipeline sales, pushing R&D returns to 7%, but excluding GLP-1 therapies, expected returns fall sharply to 2.9%, highlighting the sector's growing dependence on a single drug category.