As drugs like Ozempic and Wegovy become more widespread, an increasing number of employees are asking their insurance to cover them. Recently though, employers including the University of Texas and private healthcare system Ascension have halted coverage saying that they cannot keep up with the rising costs as more people get on GLP-1 medications. In UT’s announcement about the change, it stated that coverage for these medications now cost $5 million per month compared with $1.5 million per month a year and a half prior.
This is where eight-year-old healthcare technology company Virta sees an opportunity. Virta works with employers—including United Airlines and UPS—and healthcare plans to help reverse type 2 diabetes and obesity, primarily using nutritional therapy. The company’s main selling point? Giving employers and providers a cheaper alternative to weight loss treatment GLP-1s. Patients who don’t have access to coverage can use its virtual platform and services for $249 a month. The company has........