Key facts
- Some U.S. employers plan to drop coverage for GLP-1 weight-loss drugs in 2027.
- New requirements such as weigh-ins, app tracking, and health coaching are being implemented for GLP-1 coverage.
- About 10% of employers currently covering GLP-1s for weight loss intend to discontinue coverage in 2027.
- A Mercer survey found 5% of large employers plan to drop coverage for these drugs in 2027.
- Health insurer Cigna stopped covering these treatments for its own employees starting July.
Some U.S. employers are planning to discontinue coverage for GLP-1 weight-loss drugs in 2027 as the number of people taking these medications increases. This trend is occurring despite lower prices for newer oral versions of drugs like Novo Nordisk's Wegovy and Eli Lilly's Zepbound and Foundayo. Employers are implementing stricter requirements for coverage, including mandatory weigh-ins, app tracking, and health coaching. Some companies are also discontinuing coverage altogether.
Surveys indicate that approximately 10% of employers currently covering GLP-1s for weight loss intend to drop them in 2027, with a separate consultancy reporting 5% of large employers planning the same. While newer oral pills are available at lower monthly costs, employers are concerned about not achieving the same savings as direct cash purchases, especially as the patient population grows and individuals remain on treatment long-term. This increased demand and broader eligibility are contributing to sustained high costs for employers, making GLP-1s a significant cost driver.