Employers plan to drop GLP-1 weight-loss drug coverage by 2027

Data from the Business Group on Health indicates that 10% of large employers currently offering these benefits intend to cut them within two years. A separate survey by Mercer mirrors this sentiment, finding that 5% of companies with more than 500 employees are planning similar exits. This cooling in corporate enthusiasm comes as providers struggle to manage the financial burden of a rapidly expanding patient population, even as unit costs for popular treatments like Wegovy and Zepbound begin to stabilize.

Employers are increasingly frustrated by the lack of cost-saving transparency from pharmacy benefit managers. While direct-to-consumer options—including new oral pills priced as low as $149 per month—have introduced price competition, the sheer volume of new users keeps aggregate spending high. Industry experts point out that while injectable users are shifting to more accessible oral versions, the ease of use is attracting a broader demographic that had previously avoided weight-loss therapies. Consequently, firms like Cigna have already begun phasing out internal coverage, signaling a broader trend where companies are pushing employees toward direct-purchase channels rather than absorbing the expense themselves.