Bank of America spends over $250M a year on weight-loss drugs for employees

Bank of America is spending more than $250 million a year to cover GLP-1 obesity treatments for its employees, making it one of the most prominent examples of a major US company committing heavily to weight-loss drug benefits.

Brian Moynihan, the bank's CEO, told CNBC in a recent interview that it spends more than $250 million annually on GLP-1 treatment coverage. "Employees are seeing great results," he said.

Bank of America's total annual healthcare budget for employees stands at around $2 billion, meaning GLP-1 drugs alone account for more than 12.5 percent of that spending.

Wegovy and Mounjaro are among the best-known GLP-1 drugs. They work by mimicking hormones that regulate blood sugar and suppress appetite, helping patients lose weight. Originally developed to treat diabetes, they have since gained widespread use as obesity treatments as their weight-loss effects became better known.

The bank says it plans to continue the benefit. It has concluded that the long-term gains from improving employee health outweigh the short-term cost of covering the drugs.

Moynihan said GLP-1 treatments can also lower the risk of heart disease and other conditions. "Even if some employees leave the company before seeing the full benefits of treatment, it's still the right thing to do," he said.

A survey by the International Foundation of Employee Benefit Plans found that 36 percent of US companies this year fully cover the cost of GLP-1 treatments for their employees.