Employers cut insurance coverage for GLP-1 weight-loss drugs

Key Points:

• Starbucks and other major employers like PepsiCo and CIGNA are cutting insurance coverage for GLP-1 weight-loss drugs such as Wegovy and Zepbound due to rising costs, leaving employees like Noah Stevens unable to afford these medications out-of-pocket.
• Coverage for GLP-1 drugs prescribed for obesity has declined among large employers from 43% in 2023 to 33% expected in 2026, with many companies citing the significant impact on prescription drug spending as the primary reason for dropping coverage.
• Smaller employers are even less likely to cover GLP-1 drugs, with only 18% providing coverage for obesity treatment, and very few planning to add it in the near future.
• In response to coverage cuts, some companies are directing employees to purchase medications directly from manufacturers at lower prices or to use third-party weight-loss vendors, while some consumers turn to telehealth services or compounded drug versions to afford treatment.
• Experts note that while GLP-1 drugs are effective for weight loss and health improvement, the high costs are forcing employers to make difficult decisions to manage overall healthcare spending, potentially leading to increased direct-to-consumer purchases and downward pressure on drug prices.