What You Need to Know
• Health insurer Cigna confirmed it stopped covering GLP-1s for weight loss on July 1.
• PepsiCo also discontinued GLP-1 coverage for employees due to rising costs, while maintaining diabetes coverage.
• Approximately 11% of U.S. adults now use GLP-1 medications for weight loss, up from 3% in 2024.
Health insurer Cigna has announced that it ceased coverage of glucagon-like peptide-1 receptor agonists (GLP-1s) for weight loss through its employee health plan as of July 1. Similarly, PepsiCo has eliminated GLP-1 coverage for its employees, citing increased costs, although it will continue to cover the medication for diabetes management. A letter sent to affected PepsiCo employees indicated that prescription weight loss medications have become one of the fastest-growing expenses in the company’s health plans. Recent data shows that about 11% of U.S. adults are currently using GLP-1 medications for weight loss, a significant increase from 3% in 2024, highlighting the rising demand for these treatments.
Why It Matters
The decision by Cigna and PepsiCo to cut GLP-1 coverage reflects the growing financial burden these medications impose on employers. Since the FDA approved the first GLP-1 medication in 2014, usage has surged, particularly following the approvals of Wegovy in 2021 and Zepbound in 2023. Research indicates that the rising adoption of GLP-1s has led to higher-than-expected prescription drug costs, prompting companies to reconsider their coverage policies. This trend underscores the challenges employers face in balancing comprehensive healthcare benefits with sustainability in a changing pharmaceutical landscape.
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