Bank of America spends more than $250 million annually covering GLP-1 weight loss drugs for its employees, CEO Brian Moynihan told CNBC on Wednesday. The disclosure highlights the company's commitment to workforce health benefits despite rapidly rising pharmaceutical costs. Employers nationwide have grappled with soaring demand for GLP-1 medications such as Ozempic and Wegovy, which can cost thousands of dollars per patient yearly, with many self-insured companies restricting coverage as utilization climbs. Moynihan stated the spending represents a worthwhile investment in employee health. The nation's second-largest lender by assets sets aside more than $2 billion yearly on healthcare overall for its roughly 211,000 employees, with GLP-1 expenditures increasing from zero four or five years ago.
Bank of America Allocates $2 Billion Annually for Employee Healthcare
Moynihan told CNBC's Andrew Ross Sorkin that the company dedicates over $2 billion per year to healthcare for its approximately 211,000 employees. Within that total, GLP-1 drug coverage now accounts for more than $250 million. "We spend about $250 million or more on GLPs, and that's up from zero" four or five years ago, Moynihan said. "We see a great impact on the employees." The CEO acknowledged that some employees may leave Bank of America before the company realizes long-term savings from improved health, but said the decision ultimately reflects a push to provide valuable benefits.
Company Pairs GLP-1 Access with Health Coaching Program
Bank of America combines access to GLP-1 drugs with health coaching to help monitor weight loss and lifestyle adjustments, according to Moynihan. "It's been fascinating to watch our teammates' behavior on these adjustments --- the loss of weight," he said. Beyond long-term preventative health outcomes, the CEO pointed to emerging clinical data suggesting nearer-term benefits, including a lower incidence of cardiovascular events. Moynihan stated, "Our view is that [because of] the long-term health benefits, plus there may be more short-term health benefits ... it's a good investment."
Bank of America Negotiates Drug Prices with Manufacturers and PBMs
The company is using its size to negotiate lower prices from drugmakers and pharmacy benefit managers, Moynihan said. "Believe me, we're pounding everybody on price and trying to get as cheap [as possible]," he told CNBC. The cost management strategy aims to make the substantial GLP-1 investment more sustainable while maintaining comprehensive coverage for employees.
FAQ
How much does Bank of America spend on GLP-1 drugs for employees annually?
Bank of America spends more than $250 million per year covering GLP-1 weight loss drugs for its workforce, according to CEO Brian Moynihan's statement to CNBC on Wednesday. This spending increased from zero four or five years ago.
What is Bank of America's total annual healthcare spending for employees?
The company sets aside more than $2 billion annually on healthcare overall for its roughly 211,000 employees, with GLP-1 drug coverage representing over $250 million of that total.
How does Bank of America support employees using GLP-1 medications?
The company pairs access to GLP-1 drugs with health coaching to help monitor weight loss and lifestyle adjustments. CEO Brian Moynihan stated the company sees "a great impact on the employees" and pointed to emerging clinical data suggesting benefits including lower incidence of cardiovascular events.
