• by Les Luchter , June 4, 2024

The enormous popularity of GLP-1 weight loss drugs brings “massive implications” to health insurance providers, who largely don’t cover such meds as Novo Nordisk’s Ozempic and Wegovy or Eli Lilly’s Mounjaro and Zepbound.

That’s the conclusion of a study conducted by WHY Group, Horizon Media’s cultural intelligence division.

For starters, Horizon found that over the past year, 37% of consumers interested in GLP-1s have considered switching insurance companies to gain access to the drugs, compared with 30% overall who have considered switching.

The group most likely to switch: 25- to 34-year-olds, says Horizon. And, within that age group, wome “are the canary in the coal mine” (although among all ages, men are just as interested in the new drugs as women).

But, for females 15-34, 72% say they are interested in GLP-1s, 24% are “very interested,” and 12% have “actively looked into switching insurance in the past year.”

This possibility was found most likely among 18- to 24-year-olds, with 47% of them who are interested in GLP-1s saying they’d consider leaving traditional insurance to gain GLP-1 access.

Indeed, 82% of all respondents interested in or currently using GLP-1s say they’d consider using at least one alternative to the traditional doctor/insurance path to get them.

These alternatives are led by commercial diet programs (like Weight Watchers) and telemedicine appointments, followed by such other competitors as concierge services and med spas.

“For women in this age range, social media creators and personal research influence their GLP -1 decision process equally as much as family/friends and insurance providers,” Miriam Browning-Nance, WHY vice president, said in a statement.  The study finds that 47% of these women are “willing to try a remedy endorsed by a celeb” and 46% “turn to influencers for health/wellness advice.”

Beyond consumers who want to switch from one insurance company to another, Horizon says the industry also faces the loss of customers altogether, particularly younger ones, “posing a threat to the future of insurance.”

The study, titled “Injecting Change: Weighing the Future of Insurance in the Age of Ozempic,” notes that GLP-1 marketers accounted for half a billion dollar in ad spend last year, with the market “predicted to exceed $100 billion by 2030.” 

WHY found that 64% of adults are aware of GLP-1 brands (with 37% thinking specifically of Ozempic), and 56% are at least somewhat interested in using them, which an Horizon press release points out is “a figure ironically close to the percentage of Americans who regularly eat cookies.”

On the plus side for health insurance marketers, the study determined that “people are willing to pay more for what they want,” according to Browning-Nance, who said that about half of all people under 64 years old would increase or upgrade their insurance plans to get GLP-1 coverage.

Horizon suggests that insurance companies offer “buy-up plans” to fulfill that interest, along with “appealing financing options” such as branded credits, rewards or loyalty points “for members who have to pay part or all out-of-pocket.”

Other brand-building suggestions by WHY include:

“Educate and influence above the noise and hype” by encouraging people to go to their doctors for medical info and potential coverage options,” giving doctors “ways to talk about them through prepared messaging and materials,” and partnering with “a network of influential healthcare professionals to provide more accurate information and warn about compounded non-regulated versions.

“Give people more personal support through the process” by training call center staff to be “fully educated about these drugs and help patients navigate the entire process.

Lastly, “Identify and understand those most likely to jump ship from your plans or from traditional insurance altogether” by partnering with new business in the category “to access their data — understand who they’re targeting, who they’re reaching, and who they’re converting.” WHY says this data “could reveal pathways to coverage that are mutually economically viable.”

The report notes that Horizon Media has 29 years of health insurance experience, but the agency, claiming confidentiality, would not reveal any of those clients. As recently as 2018, though, Horizon was reported as picking up over $250 million in business from UnitedHealthCare. 

WHY’s survey of 1,003 people was conducted this April.