More US employers dropping coverage for weight-loss drugs in 2027
More US employers dropping coverage for weight-loss drugs in 2027
Rob Taub Sun, August 30, 2026 at 9:46 PM UTC
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(NewsNation) — GLP-1 drugs continue to reshape the health care and business landscape, but their growing use may already be creating financial challenges for employers.
A survey conducted by the Business Group on Health revealed employers project a 9.2% increase in health care costs in 2027. As a result, 14% of employers have either dropped or plan to drop coverage for GLP-1 weight-loss drugs.
The survey also found that two-thirds of employers reported increased use of the medications among employees.
“This represents an unfortunate new reality for employers, who now face growing difficulty in budgeting and forecasting," said Ellen Kelsay, president of the Business Group on Health. "It’s a call to take a more disruptive approach and rethink how to deliver value and improved health outcomes.”
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Pharmacy costs are expected to rise 12% for employers next year and already account for about 25% of overall health care spending.
The share of employers covering weight-loss drugs has also fallen, from 72% in 2025 to 60% in 2026.
"Employers remain deeply committed to sponsoring health coverage and are uniquely positioned to transform the current landscape through near- and long-term strategies," Kelsay said.
"That means engaging both leadership and the workforce in discourse about the need for disruption that eliminates waste, rewards value and holds vendor partners accountable for results. The right kind of disruption can improve affordability and clinical outcomes."
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Source: “AOL Money”
