Some people call it a new “miracle drug.” Others are far more skeptical. However, one thing is certain: the surge in popularity of weight-loss drugs around the country is not going unnoticed. With obesity rates in the United States reaching over 40%, people are eager to find new ways to develop healthier lifestyles. Also known as Anti-Obesity Medications (AOMs), these drugs are still relatively new to the market and carry high, ongoing costs. Our research seeks to create an actuarial model to evaluate the financial impact of covering AOMs within employer-sponsored health plans. Current research on this subject is limited and studies that are available reflect conflicting results. We seek to create an accessible (Excel-based), functioning ROI model for AOM coverage that accounts for drug costs, expected utilization, weight-related risk reduction, and future medical cost offsets. We believe that the successful production of a dependable actuarial model could help employers make a more informed choice when it comes to the coverage of AOMs for their employees.
