GLP-1 Drug Coverage Continues to Rise in Canada

Published May 22, 2025

Press Release

New Survey Data Reveals Prior Authorization or Other Utilization Management Strategies, Eligibility Requirements, Annual Maximum as Leading Cost Control Methods 

 

Brookfield, Wisconsin | May 22, 2025—A new survey report from the International Foundation of Employee Benefit Plans reveals updated Canadian employer coverage and cost-control mechanisms surrounding glucagon-like peptide-1 (GLP-1) drugs. The International Foundation first conducted this survey in January 2024.  

Employers indicated the following coverage for GLP-1 drugs: 

  • 56% provide coverage for diabetes only (down from 66% in 2024) 

  • 31% provide coverage for both diabetes and weight loss (up from 17% in 2024). 

Of those that currently offer GLP-1 drug coverage only for diabetes, 20% are considering offering the drugs for weight loss (up from 9% in 2024). 

“This new survey data shows that over the last year, GLP-1 coverage in Canada has continued to rise, reflecting a growing interest in these drugs as both a weight loss and diabetes treatment,” said Julie Stich, CEBS, Vice President of Content at the International Foundation. “Organizations are balancing the ongoing demand from employees for GLP-1 coverage for weight loss by continuing to explore feasibility through cost-control mechanisms.”   

 

Cost-Control Mechanisms 

Of those covering GLP-1 drugs, employers are using eligibility requirements (45%) and an annual maximum (32%) as cost-control mechanisms. Utilization management strategies continue to be the most heavily relied upon cost-control mechanisms (68%).  

Out of those who use utilization management:  

  • 100% require prior authorization 

  • 27% require reauthorization for refills 

  • 13% use a physician-led approach 

  • 13% limit prescribers by type 

  • 7% limit prescribers to a telehealth/virtual care vendor. 

Coverage Methods 

Of those covering GLP-1 drugs: 

  • 86% offer the prescription drug within their medical plan 

  • 27% offer the drug through a health care spending account (HCSA) 

  • 14% offer the drug through a supplemental rider. 

Visit www.ifebp.org/CanadaGLP2025 for more information and to view the full survey report. 

 

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About the International Foundation: The International Foundation of Employee Benefit Plans is the premier educational organization dedicated to providing the diverse employee benefits community with objective, solution-oriented education, research and information to ensure the health and financial security of plan beneficiaries worldwide. The International Foundation has more than 31,000 multiemployer, corporate and public sector members representing over 25 million lives. For additional information, visit www.ifebp.org.