Revolutionizing Weight Loss: Employers Turn to Nutrition Counseling
The landscape of weight loss management is undergoing a significant shift, driven by the rising costs of diabetes and weight loss drugs. Employers are now seeking alternative solutions, and nutrition counseling is emerging as a preferred approach.
A Shift in Focus
Virta Health, a digital diabetes program, has seen a surge in demand for its nutrition-oriented services. Founder and CEO Sami Inkinen attributes this growth to employers recognizing the importance of sustainable weight loss solutions. “Our goal is not to drive the maximum number of GLP-1 prescriptions, but to responsibly use these drugs and then get members off of them through nutrition counseling,” Inkinen explains.
Proven Results
A peer-reviewed study published by Virta Health found that patients who participated in their nutrition-counseling programs maintained weight loss one year after stopping GLP-1 medications. Moreover, less than 10% of Virta’s weight loss enrollees use these popular drugs, with most opting for nutrition counseling alone and achieving an average weight loss of 13% over one year.
Employer Concerns
A survey by the Purchaser Business Group on Health revealed that 96% of employers are concerned about the long-term cost implications of GLP-1 medications. As a result, they are seeking utilization management strategies, such as nutrition counseling and coaching services, to mitigate these costs.
Challenges and Opportunities
While employers are embracing nutrition counseling, they face challenges in implementing these programs. Randa Deaton, vice president of purchaser engagement with Purchaser Business Group on Health, notes that pharmacy benefits managers and drug manufacturers are reducing rebates when employers require lifestyle management interventions as part of the drug criteria.
Market Growth
The demand for GLP-1 weight loss management programs is driving growth for companies like Virta Health and Omada Health. Omada’s partnership with Cigna’s Evernorth pharmacy benefits division has led to a significant increase in program enrollment, from 2 million to 8 million covered lives in just one quarter.
Speculation and Growth
The success of Virta Health and Omada Health has sparked speculation about potential initial public offerings (IPOs) this year. Virta Health was valued at $2 billion in 2021, and Omada Health reportedly filed a confidential registration to go public with the Securities and Exchange Commission last summer.
Focus on Growth
For now, Virta Health’s Inkinen is focused on scaling his company. “If you have a thing that’s working, it is 1,000 times easier to just scale your thing, your team, your culture,” he says. As the market continues to evolve, one thing is clear: nutrition counseling is becoming a crucial component of weight loss management, and employers are taking notice.
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