Health insurance

Survey: Approximately 10% of US Employers May Drop GLP-1 Coverage in 2027

Are GLP-1 drugs breaking employer budgets or are the long-term savings worth the upfront cost?

Published JUN 12

Survey: Approximately 10% of US Employers May Drop GLP-1 Coverage in 2027

Story

Above: Charles Barkley advertising GLP-1 medication at Penn Station in New York City, May 31. Image credit: Erica Denhoff/Icon Sportswire/Getty Images

The Facts

Approximately 10% of large U.S.-based employers currently covering GLP-1 drugs for obesity said they plan to drop that benefit in 2027, according to a Business Group on Health survey of 105 employers conducted in February and March.
Business Group on Health
Reuters
Quartz
A separate Mercer survey of 481 organizations with 500 or more employees found that 5% of large employers plan to drop GLP-1 weight-loss coverage in 2027. The two surveys also diverge on current adoption rates, with Mercer reporting 44% coverage versus Business Group on Health's 67%.
Reuters
STAT
Health insurer Cigna ended GLP-1 weight-loss coverage for its roughly 67,700 employees effective July 1, directing affected workers to purchase the medications through manufacturer websites or TrumpRx.gov. The change does not affect coverage for type 2 diabetes treatment.
Reuters
Pharmaceutical Commerce
Nearly eight in 10 employers surveyed by Business Group on Health said GLP-1s are driving an increase in their company's health care costs, and 87% anticipate that the availability of oral GLP-1 medications will result in higher overall demand for the drugs.
Pharmaceutical Commerce
Quartz
Novo Nordisk launched a Wegovy pill in January — approved in the U.K. on Thursday — and Eli Lilly began selling its oral Foundayo in April, both starting at around $149 per month. Industry experts say the pill options have attracted new GLP-1 users, keeping employer costs elevated despite lower per-unit prices.
Reuters
STAT
GOV.UK

Sources Split

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RIGHT

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The Spin

Narrative A

GLP-1 drugs are blowing up employer health care budgets, and no amount of step therapy or utilization management is fixing it. Nearly 80% of employers say these medications are driving cost increases, and the pricing system is rigged against plan sponsors who can see cheaper cash-pay rates on consumer platforms but can't access them. Cutting or restructuring coverage is a rational response to a broken system that keeps getting more expensive and seems to satisfy no one anyway.

Pharmaceutical Commerce

Narrative B

Dropping GLP-1 coverage is a decision to pay more later. Obesity drives over 250 conditions and costs the U.S. more than $261 billion annually, meaning employers who skip coverage are just deferring and compounding those costs. A healthier workforce means less absenteeism, stronger retention and a benefits package that actually attracts talent, especially younger workers who rank health coverage above higher pay.

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