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A Few Years Ago, Employers Were Wary of Nutrition-Counseling Programs for Weight Loss; Now They’re Embracing Them
In the past, many employers were hesitant to adopt nutrition-counseling programs for employee weight loss, but a recent shift has seen companies warming up to the approach. This change can be attributed to rising costs for diabetes and weight loss drugs such as Novo Nordisk’s Ozempic and Wegovy, and Eli Lilly’s Mounjaro and Zepbound.
Virta Health, a telemedicine company, has found success in this space, with a peer-reviewed study published a year ago showing that patients on its nutrition-counseling programs maintained weight loss even after stopping GLP-1 medications. According to the company’s CEO, Sami Inkinen, less than 10% of their weight loss enrollees use GLP-1 drugs, with most choosing nutrition counseling alone and still achieving an average weight loss of 13% over a year.
Employers are now recognizing the benefits of nutrition counseling and coaching, with 96% of those surveyed by the Purchaser Business Group on Health expressing concerns about the long-term cost implications of GLP-1 drugs. As a result, there is growing demand for utilization management strategies like nutrition counseling and coaching services.
Omada Health, another company in this space, has seen strong demand for its GLP-1 weight loss management program, with enrollment increasing from 2 million covered lives in the second quarter of 2024 to 8 million in the third quarter after partnering with Cigna’s Evernorth pharmacy benefits division.
The growth in demand has led to speculation that Virta and Omada may go public in 2025, with some reports suggesting that Omada filed a confidential registration with the Securities and Exchange Commission last summer. For now, Virta’s focus is on scaling its business, with Inkinen expressing confidence that the company will be profitable in the second half of this year.