Coverage is slipping after three years of growth
WTW found that only 53% of U.S. employers now fund GLP-1 medicines for weight loss, marking the first retreat since their weight-loss use took off three years back. For contrast, WTW reported that 57% of employers funded the drugs in 2025.
The consultants also reported that 30% of employers who still include GLP-1s are considering ending that funding. Respondents pointed to higher costs, strong demand and difficulty proving returns as reasons for the pullback.
Several high profile employers have already stopped funding GLP-1s, including Lowe's Cos., PepsiCo Inc., PricewaterhouseCoopers LLP, Starbucks Corp., and Cigna Group. Bloomberg Businessweek reported last month that Cigna, PepsiCo and municipal governments have faced employee backlash, including petitions, complaints to state labor authorities and public campaigns, after scaling back coverage.
Why employers are backing away
Drug spending has helped push plan costs higher in recent years. Mike Pasterick, the head of Aon's North America health solutions group, said employers are testing subsidies that let workers buy GLP-1s at lower prices through telehealth providers or directly from drugmakers on Novo Nordisk A/S's NovoCare and Eli Lilly & Co's LillyDirect. "It still provides that choice, but it kind of takes the cost burden off of the employer," he said.
Price is the pressure point. The Employee Benefit Research Institute estimates GLP-1s run $617 to $766 for a 30 day supply, and adding them to plans can lift monthly premiums for employer sponsored coverage by up to 14%. KFF reports that this year the average cost for a family health plan climbed 5% to $28,303, and employers cover 73% of that amount.
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Companies are responding by raising workers' monthly premiums and copays, trimming dependent coverage and dropping weight-loss drug funding. PepsiCo told employees GLP-1s are "one of the fastest-growing costs" in its plans and said ending coverage "enables us to maintain a healthcare program that is sustainable and affordable for all PepsiCo employees, while continuing to provide a comprehensive, high value benefits package." Cigna said it sought input from clinical leaders before removing the drugs from its plans and noted it still offers weight-loss coaching.
What companies and employees are doing instead
Most employers still cover GLP-1s to treat diabetes even when they no longer fund them for weight loss. Some are experimenting with discounts via telehealth or manufacturer platforms to keep access while shifting costs off the plan.
Coverage was a talking point on earnings calls. Eli Lilly executives said they expect overall coverage for their drugs to hold relatively steady through 2027, even with some employers stepping back. "Obviously, there's been noise around a number of employers opting out of coverage," Lilly's U.S. chief Ilya Yuffa said, adding the company is having "positive discussions" with some employers and sees bigger gains next year from Medicaid and Medicare.
About 11% of Americans use GLP-1s for weight loss, and rollbacks have not gone over well. Staff at Cigna, PepsiCo and municipal governments have pushed back with petitions, filings to state labor agencies and public pressure after plans excluded the drugs.
What this means for your portfolio and benefits
Two takeaways for investors tracking healthcare spend and consumer wallets. First, employers are shifting more plan costs onto workers, which shows up as higher premiums and copays. Second, even if weight-loss coverage goes away, you may see alternative routes like discounted telehealth or manufacturer programs, while diabetes coverage largely remains.
Jeff Levin-Scherz summed up the trade-off: "These are great drugs, and they have huge clinical benefits, but the costs are not sustainable." The bottom line: watch benefits updates and insurer commentary, because GLP-1 coverage trends feed directly into employer health costs, drugmaker volumes and, ultimately, your healthcare exposure in the market.
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