This bank spends $250M annually on weight-loss drugs for employees
What's the story
Bank of America (BoA) is spending over $250 million annually to provide GLP-1 weight loss drugs to its employees. The company's CEO Brian Moynihan revealed the information in an interview with CNBC. He said the cost has increased from nothing about five years ago, but he believes it's a "good investment" considering the potential health benefits for employees in the near and long term.
Healthcare expenditure
GLP-1s now account for 13% of total healthcare spending
Moynihan said BofA spends over $2 billion a year on healthcare for its roughly 211,000 employees. Of this, GLP-1 medications now account for some 13% of the total healthcare spending.
He said, "We spend about $250 million or more on GLPs, and that's up from zero," four or five years ago. "We see a great impact on the employees."
Cost management
Moynihan addresses potential employee turnover before long-term savings realization
Moynihan admitted some employees might leave BofA before the company sees long-term savings from better health.
However, he said the decision is part of a larger effort to provide valuable benefits.
The bank combines access to these drugs with health coaching for weight loss and lifestyle changes.
Moynihan also noted recent clinical data showing potential short-term benefits like lower cardiovascular events rates.
Price negotiation
BofA uses its size to negotiate lower prices with drugmakers
Moynihan also revealed that BofA is using its size to negotiate lower prices with drugmakers and pharmacy benefit managers.
He said, "Believe me, we're pounding everybody on price and trying to get as cheap [as possible]. 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."
Coverage increase
Employer coverage of GLP-1s remains steady at about 36%
A survey by the International Foundation of Employee Benefit Plans (IFEBP) found that around 36% of employers cover GLP-1s for diabetes and weight loss.
Although this is a slight increase from 34% in 2024, it has remained unchanged since 2025.
The cost remains a major factor in employer decisions regarding GLP-1 coverage, with these drugs accounting for 11.4% of annual claims in 2026, up from 6.9% in 2023.