WASHINGTON (WOWO) — More U.S. employers are scaling back coverage for GLP-1 medications used for weight loss as companies prepare for another significant increase in health care expenses.
A survey from the Business Group on Health found employers expect their health care costs to rise 9.2% in 2027. At the same time, 14% of employers said they have already dropped coverage for GLP-1 weight-loss medications or plan to do so next year.
The shift comes as use of the medications continues to increase among employees and prescription drug expenses put additional pressure on employer-sponsored health plans.
According to the survey, about two-thirds of employers reported increased use of GLP-1 medications among their workers.
The medications include drugs originally developed to treat conditions such as Type 2 diabetes that have also become widely used for weight management. Their growing popularity has created a new challenge for employers, insurers and health plans trying to balance access to expensive treatments with the overall cost of providing health benefits.
The Business Group on Health says pharmacy costs alone are expected to increase 12% for employers in 2027. Prescription drugs already account for approximately one-quarter of employers’ overall health care spending, according to the organization.
The percentage of employers covering weight-loss medications has already declined significantly.
The survey found 72% of employers provided coverage for weight-loss drugs in 2025. That figure fell to 60% in 2026.
The latest findings suggest that trend could continue into 2027 as employers reassess which treatments their health plans can afford to cover.
Ellen Kelsay, president and CEO of the Business Group on Health, said the growing expense of health care is making it harder for employers to predict their future costs.
“This represents an unfortunate new reality for employers, who now face growing difficulty in budgeting and forecasting,” Kelsay said.
She said employers may need to reconsider how health benefits are designed and delivered rather than simply accepting continued increases in costs.
“It’s a call to take a more disruptive approach and rethink how to deliver value and improved health outcomes,” Kelsay said.
The issue is particularly significant for GLP-1 medications because of their rapid growth in popularity.
While the drugs can provide substantial weight loss for some patients and are used to treat certain medical conditions, their cost can be considerable when used for long-term weight management. Employers must weigh those expenses against potential health benefits and the possibility that successful treatment could reduce other medical costs over time.
For companies, that calculation is becoming more complicated as more employees seek access to the medications.
Kelsay said employers continue to see themselves as an important part of the nation’s health care system but need greater accountability from the companies and vendors involved in providing health benefits.
“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.
She said that could involve greater involvement from company leadership and employees in discussions about health care costs, as well as increased scrutiny of vendors responsible for delivering benefits.
“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,” Kelsay said.
Kelsay argued that changes do not necessarily have to mean worse health outcomes.
“The right kind of disruption can improve affordability and clinical outcomes,” she said.
For employees, changes to employer-sponsored plans could mean fewer options for obtaining GLP-1 medications for weight management in the coming year.
Workers who currently rely on employer coverage should review their 2027 benefits information carefully during open enrollment, particularly if they use a GLP-1 medication or are considering starting one.
The survey’s findings also illustrate the broader pressure facing employer health plans. With overall costs projected to rise 9.2% and pharmacy spending expected to increase 12%, employers are looking for ways to control expenses while continuing to provide competitive health benefits.
That puts GLP-1 medications at the center of an increasingly complicated debate over the cost of weight-loss treatment, employee health and the long-term sustainability of employer-sponsored health insurance.
