PepsiCo to End Weight-Loss Drug Coverage for Some Employees as GLP-1 Costs Rise

PepsiCo is set to end insurance coverage for prescription weight-loss medications for some employees from October, as employers face rising costs associated with GLP-1 drugs.

Employees were informed of the change through a communication from Express Scripts, the pharmacy benefits management business of Cigna Group. According to the communication, weight-loss medications have become one of the fastest-growing expenses within PepsiCo’s healthcare plans.

The company said removing coverage would help maintain a healthcare programme that remains sustainable and affordable for employees.

PepsiCo said employees who want to continue using the medications will have the option of paying for them outside the company’s health plans. The communication also highlighted newly available cash-pay affordability options for certain commonly prescribed weight-loss medicines.

The decision comes as employers and insurers reassess their approach to GLP-1 medications, which have seen a sharp increase in demand in recent years. Drugs such as Wegovy from Novo Nordisk and Zepbound from Eli Lilly have become widely used for weight management, while their costs have created growing challenges for employer-sponsored healthcare plans.

Employers reassess GLP-1 coverage

PepsiCo’s decision reflects a broader debate among US employers over whether weight-loss medications should remain covered under workplace health insurance plans.

A Mercer survey found that 6% of large employers had dropped coverage for weight-loss medications in 2026, while another 5% said they planned to do so in 2027. Separately, Business Group on Health reported that the share of large employers providing coverage fell to 60% this year, compared with 72% a year earlier.

The figures indicate that some employers are reassessing the financial impact of GLP-1 treatments despite continuing demand for the medications.

Cigna Chief Executive Officer Brian Evanko said during the company’s July earnings call that growth in GLP-1 prescriptions had moderated. He also pointed to declines in employer coverage and slower utilisation within Cigna’s pharmacy benefits business.

Rising healthcare costs

The growing use of GLP-1 medications has become an important issue for companies managing employee healthcare budgets. While the drugs can provide significant benefits for eligible patients, their relatively high costs have increased spending for employers and insurers that provide coverage.

For PepsiCo employees affected by the change, the key question will be how the transition to alternative payment options works and what costs they will face if they choose to continue treatment.

The development highlights the challenge facing employers as they balance access to increasingly popular medications with the need to control healthcare spending.