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July 2025  Volume 23, Number 7        
 

The New Benefits Employees Want—And Why Employers Are Hesitant

As workplace benefits evolve, employees are increasingly demanding personalized health and wellness perks that go beyond traditional offerings. Two major trends—weight loss drug coverage and fertility benefits—are reshaping employer-sponsored healthcare, but companies remain divided on whether to fully embrace these changes.

Weight Loss Drugs: A Growing Demand, But Limited Coverage

Medications like Ozempic and Wegovy, originally developed for diabetes, have surged in popularity for weight loss treatment. However, despite their effectiveness, many employers are reluctant to cover these costly drugs. According to a recent survey, only 36% of employers provide coverage for both diabetes and weight loss, while 55% limit coverage to diabetes alone. The hesitation largely stems from high costs, with some companies fearing that rising pharmaceutical expenses could strain their healthcare budgets.

Still, obesity is increasingly recognized as a chronic disease, and 22% of employers now cover weight loss medications as part of their health plans. Some businesses see long-term savings in reduced healthcare costs and improved employee productivity, but widespread adoption remains uncertain.

Fertility Benefits: A Rapidly Expanding Trend

Meanwhile, fertility benefits have seen a significant rise, with 40% of employers now offering fertility-related coverage, up from 30% in 2020. Companies are recognizing that family planning support—including IVF treatments, egg freezing, and surrogacy assistance—can be a powerful tool for employee retention and satisfaction.

A growing number of businesses are expanding fertility benefits to be more inclusive, ensuring that same-sex couples, solo parents, and individuals with unexplained infertility receive adequate support. As demand continues to rise, fertility benefits are expected to become a standard offering rather than a niche perk.

The Future of Workplace Benefits

While employers remain cautious about rising healthcare costs, the shift toward customized benefits is undeniable. Companies that invest in weight loss treatments and fertility support may see higher employee engagement, improved retention, and long-term cost savings. As workplace expectations evolve, businesses must decide whether to adapt or risk falling behind in the competition for top talent.

 

 

 

 

In this issue:

This Just In ... Retirement Benefits & Pension Rule Changes: The Impact on Public Sector Employees

The Rise of Flexible Compensation: A Game-Changer for Modern Workplaces

Balancing Employee Wellbeing and Financial Pressures: The Evolving Workplace Benefits Landscape

How Businesses Are Using Data Analytics to Optimize Employee Benefits Engagementt

The New Benefits Employees Want—And Why Employers Are Hesitant

 

 


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