UPDATE 4-Cigna to help health plans limit costs amid boom in weight-loss drugs

(Adds spokesperson comment in paragraphs 3, 4 and 6)

By Leroy Leo

March 7 (Reuters) - Cigna Group said on Thursday its pharmacy benefit management unit had launched a program aiming to cap annual cost increases for health insurance providers and employers from new weight-loss drugs at 15%, as demand for the treatments soars.

High demand for Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound has led to an increase in costs for employer-sponsored health insurance in recent months.

Cigna's Evernorth unit will offer its clients a guarantee that it will limit annual increases in GLP-1 drug costs at 15%, a spokesperson said. The company aims to achieve this through various measures, including helping people with obesity and diabetes get lifestyle modification and coaching support.

Evernorth will also take on a financial risk with the guarantee, the spokesperson said.

This, in turn, would help ensure access to the drugs for appropriate patients, according to Cigna.

The company has also signed agreements related to the new program with Eli Lilly and Novo Nordisk, but did not provide details.

Cigna said the new GLP-1 program was the "industry’s first financial guarantee" for clients interested in covering weight-loss drugs designed to mimic a hormone called GLP-1, to regulate blood sugar, slow digestion and suppress appetite.

Reuters reported in December that some patients with type 2 diabetes had faced difficulties in getting reimbursed for drugs like Ozempic as U.S. insurers implemented restrictions designed to deter doctors from prescribing the medication for weight loss.

Evernorth's new program adds to the growing list of products and services that are being launched either to increase the use of GLP-1 drugs, or curb the expenses associated with them, including those by weight-loss program operator WW International and Eli Lilly.

Cigna also raised its long-term annual adjusted EPS growth target to between 10 and 14%, from the 10 to 13% target it had given in December.

(Reporting by Leroy Leo and Christy Santhosh in Bengaluru; Editing by Shilpi Majumdar and Pooja Desai)