By Andrea Hansen, President, Sutton Benefits & Pension
It’s hard to miss the headlines about Ozempic and similar GLP-1 drugs. Originally designed to treat Type 2 diabetes, GLP-1 drugs are now being heavily promoted as weight-management medications. Their popularity has surged across Canada, and many employers are wondering what this means for their benefits plans.
According to Statistics Canada, about nine per cent of Canadian adults have diabetes and as many as 65 per cent are overweight or obese. It’s no surprise GLP-1 drugs are becoming a common prescription and a growing consideration for group benefits plans.
Unfortunately, this widespread chronic disease is often misunderstood by society, and even within the health care system, says Obesity Canada.
“Too many are told to ‘just eat less and move more’, reducing a complex disease to oversimplified advice,” says obesitycanada.ca. “Dismissing the disease of obesity ignores the science, fuels harmful stigma, and unfairly shifts blame onto people for a condition they cannot fully control.”
Many benefit programs still overlook obesity as a chronic condition and fail to offer adequate support, says Benefits and Pension Monitor, even though benefit coverage and early intervention could reduce downstream conditions such as diabetes, heart disease, and stroke.
Private plans remain the primary source of coverage
There is a lot of interest around GLP-1 drugs as part of the treatment due to the life-changing results some people are experiencing. The medications work by mimicking a natural hormone that regulates blood sugar levels and appetite, helping people feel full longer.
But the financial implications can be significant: the average annual cost for a GLP-1 drug, such as Wegovy, is about $5,500 per user. If even a small percentage of employees begin using these medications, an employer’s total drug spending can quickly double.
Canada’s new national pharmacare framework lays the foundation for future expansion, but for now it covers only select diabetes medications and contraceptives. GLP-1 drugs are not included. Additionally, at the time of printing, only four jurisdictions (PEI, Manitoba, B.C., and Yukon) have signed agreements with the federal government to carry the program.
That means private plans remain the primary source of coverage for GLP-1 drugs, and employers must decide how far they want that coverage to extend.
Support must go deeper than prescriptions
Weight loss is only the tip of the iceberg, however. Beneath the surface are the factors that can cause someone to be overweight in the first place, such as high stress, trauma, poor nutrition, sedentary lifestyles, and mental health challenges.
Without addressing these root causes, employees may depend on drugs longer than necessary, or may not achieve lasting wellness even with medication support.
That’s where a broader wellness strategy becomes essential. Employee assistance programs (EAPs), wellness initiatives, and mental health support should play a role in helping employees build sustainable habits and resilience.
By investing in holistic health supports, employers can reduce long-term reliance on costly medications while improving overall employee well-being.
Designing smart, sustainable plans
At Sutton Benefits & Pension, we encourage employers to think proactively about drug plan design. We recommend you:
- Budget for emerging high-cost drugs like GLP-1s and potential new therapies now in development.
- Set clear coverage criteria or limits in consultation with advisors and insurers.
- Leverage wellness resources — such as nutrition coaching, physical activity challenges, and mental health programs — to address underlying causes of chronic conditions.
- Educate employees about what’s covered and how to access supports that help them stay healthy, not just medicated.
GLP-1 medications offer benefits for individuals managing diabetes or obesity, but they also highlight a deeper issue: many Canadians need stronger foundations in mental, physical, and nutritional wellness. For employers, the opportunity lies in taking a balanced, forward-thinking approach that supports employees holistically while maintaining a sustainable benefits plan.
