Employers Rethink Coverage of Weight-Loss Drugs as Costs Soar

Employers like PepsiCo and Cigna are cutting GLP-1 drug coverage as costs rise, impacting millions of Americans.

September 16, 2026 One Min Read

POLICY WIRE — Washington, D.C. — Major U.S. companies are reconsidering their coverage of weight-loss drugs like Ozempic and Mounjaro as rising costs force them to make difficult decisions about employee benefits.

Over 30 million Americans use GLP-1 medications for weight loss, often paying hundreds of dollars a month despite having health insurance. Industry experts warn that these expenses could double if more employers stop covering the drugs.

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A recent survey by the Business Group found that two-thirds of U.S. companies currently cover GLP-1s for weight loss, but 10 percent plan to cut coverage next year. The global insurance firm Marsh also reported that GLP-1s are driving a record increase in employer-sponsored health insurance costs. Companies such as PepsiCo, Cigna, and Starbucks have already taken steps to limit or eliminate coverage for these medications.

Reporting by Policy-Wire (PW)

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