GoodRx offers employers a workaround for GLP-1s, high-cost meds

While employers worry about the cost of popular weight loss drugs and other brand-name medications, GoodRx is offering companies a workaround to maintain access without going through insurance.

The prescription drug platform announced today its new GoodRx Employer Direct service that provides direct subsidies to employers for select "high-impact brand medications," such as Wegovy. The subsidies work on top of discounted cash prices from pharmaceutical manufacturers to deliver affordable access without plan complexity, GoodRx explained.

 "Employers are under mounting pressure to do more with less as healthcare costs climb and employees shoulder greater out-of-pocket expenses," Wendy Barnes, president and CEO of GoodRx, said in the announcement. “Employer Direct is built to meet that moment. It closes critical coverage gaps, expands access to high-impact therapies, and delivers transparent, predictable pricing -- without layering on the complexity and opacity of the traditional rebate-driven system."

With GoodRx Employer Direct, consumers automatically pay a reduced out-of-pocket price for select drugs based on the manufacturer-sponsored price on GoodRx and their employers' subsidy through the program.

This approach reduces the growing pressure on employers' health insurance spending without making major changes to health insurance plan structure, GoodRx stated. The new service also provides access to condition-specific telemedicine solutions, such as GoodRx for Weight Loss.

Employers are increasingly concerned about the impact of brand-name GLP-1s and other popular prescription drugs. The coverage of GLP-1s for weight loss, specifically, has come at a steep price for employers, KFF reported. About 64% of large firms told KFF that GLP-1 drug coverage moderately or significantly affected their prescription drug spending last year.

With cost posing a major challenge, employers indicated they are considering scaling back coverage or eliminating it for conditions like obesity. Other employers said they are considering adding case management programs and strengthening utilization management requirements, like prior authorizations.

However, these changes come in the face of employee satisfaction. There is high demand for weight loss drugs, and most employers that cover the drugs view coverage as important to employee satisfaction. Nearly half of employers who don't currently cover the drugs also view it as important, KFF found.

GoodRx stated that the new Employer Direct service delivers "a potentially meaningful new growth opportunity" for the company. The platform is "uniquely positioned" to address affordability and access challenges, it said.

The company will deliver its earnings call this week. Investors are seeking clarity on the company amid regulatory shifts, including the launch of TrumpRx, a government-run platform designed to provide consumers with direct access to discounted prices on high-cost, brand-name drugs, such as GLP-1s.

GoodRx intends for the Employer Direct program to expand its role within the healthcare ecosystem while increasing its influence in an emerging market for alternative coverage options.

Jacqueline LaPointe is a graduate of Brandeis University and King's College London. She has been writing about healthcare finance and revenue cycle management since 2016.