As employers reduce coverage of glucagon-like peptide-1 (GLP-1) receptor agonists for obesity, a new collaboration between Andel and Novo Nordisk will allow companies to help workers pay for semaglutide (Wegovy) outside of insurance.
The deal covers both injectable semaglutide, including the higher-dose semaglutide HD, and the once-daily semaglutide pill. Each employer chooses how much to contribute toward treatment, lowering out-of-pocket costs for employees while maintaining control over total spending.
GLP-1 Coverage Decline
A survey by WTW found that 53% of employers cover GLP-1s for weight loss, down from 57% in 2025, with 16% considering removing coverage, up from 9% last year.
Cost is driving this decline, with preliminary results from Marsh’s 2026 National Survey of Employer-Sponsored Health Plans projecting an 8.2% increase in employer health benefit costs in 2027, the largest since 2003, partly due to rising GLP-1 use.
Employer Spending Shift
Rather than cutting access outright, some employers are shifting GLP-1 spending outside the pharmacy benefit, with 8% directing workers to buy GLP-1s through manufacturer direct-to-consumer programs such as NovoCare or LillyDirect, and 28% planning or considering it.
The lowest-dose self-pay price for Wegovy is currently $149 a month for the pill and $199 a month for the injection, though Novo Nordisk has said that promotional pricing may change in 2027.
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Andel’s arrangement with Novo Nordisk fits this approach, allowing employers to reimburse part of employees’ out-of-pocket costs for semaglutide while dropping coverage through their pharmacy benefit manager.
Direct-to-Employer Model
Andel’s platform, which already works with Eli Lilly’s Employer Connect program, receives prescriptions directly from providers, matches them against the employer’s eligibility file, and lets members pay through its app net of the employer’s contribution.
According to Jay Bregman, founder and CEO of Andel, the collaboration with Novo Nordisk broadens the platform to include both injectable semaglutide and the once-daily semaglutide pill. The model allows employers to contribute to employees’ out-of-pocket costs for semaglutide, while Andel handles the process through its app, from prescription verification to delivery.
Bregman described the model as a parallel pathway that runs alongside an employer’s existing pharmacy benefit manager, rather than displacing it. Andel describes itself as a cooperative marketplace that runs on tax-free dollars rather than insurance, with a discount drug program that is not insurance, and participants pay the discounted charges themselves.
Tom Scales, senior vice president of market access and public affairs at Novo Nordisk, said the collaboration “creates another way for employers to support” patients taking the next step toward treatment. Bregman framed the pitch around the same cost control that employers say is driving their coverage decisions.