Why are some US employers planning to drop coverage of GLP-1 obesity drugs in 2027?

Some US employers are planning to drop coverage of GLP-1 obesity drugs in 2027 because rising demand—fueled by newly available oral versions like Wegovy and Foundayo—is keeping overall costs high despite lower unit prices, and employers are not seeing commensurate savings from pharmacy benefit managers compared to direct-to-consumer or government-negotiated pricing; as Louis Zollo of Segal stated, 'Even though we have seen the unit cost come down, the patient population keeps growing,' and Dan Mendelson of Morgan Health noted that while individual treatment costs may fall, 'on aggregate this still represents a major cost driver for employers.'

What percentage of large US employers currently cover GLP-1 drugs for obesity, and how many plan to drop coverage in 2027?

According to the Business Group on Health, 67% of large employers cover GLP-1 drugs for obesity in 2026, and about 10% of those currently covering the drugs plan to drop them in 2027; Mercer’s survey found that 5% of large employers (defined as having over 500 employees) plan to drop coverage in 2027, while 44% of companies with more than 500 employees currently cover the drugs for obesity.

Some US Employers to Drop Coverage of GLP-1 Obesity Drugs in 2027 as Use Increases

Jun 11, 2026

Rising usage of GLP-1 obesity drugs prompts some US employers to drop coverage in 2027 despite lower unit prices from manufacturers like Novo Nordisk and Eli Lilly. Industry experts cite growing patient populations and long-term usage as primary cost drivers.

reuters

2026-06-11

Some US Employers to Drop Coverage of GLP-1 Obesity Drugs in 2027 as Use Increases

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Some US Employers to Drop Coverage of GLP-1 Obesity Drugs in 2027 as Use Increases

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