As GLP-1 costs climb, more employers weigh dropping coverage in 2027

• Key Insight: Learn why employers plan coverage cuts for GLP‑1 drugs in 2027.
• What's at Stake: Rising premiums may force employers to redesign benefits and shift cost burdens.
• Forward Look: Expect stricter utilization controls and program‑based eligibility in employer plans by 2027.
• Source: Bullets generated by AI with editorial review

A growing number of U.S. employers are expected to drop coverage of GLP-1 drugs in 2027 amid concerns about rising healthcare costs, according to a new survey. 

Nearly eight in 10 companies say that weight-loss drugs are driving increases in their medical expenses, research by the Business Group on Health found. Of employers that now cover GLP-1s for weight management, only 72% expect to continue doing so in 2027, while 10% expect to drop coverage. 

"Our findings show the tremendous concern employers have regarding these medications from a cost and financial viability perspective," Ellen Kelsay, president and CEO of Business Group on Health, said in a statement. "Against the backdrop of anticipated double-digit health care cost increases, fueled to a large degree by GLP-1s and overall prescription drug costs, companies cannot ignore the reality that GLP-1s have significant implications for health care budgets — and overall affordability."

GLP-1 drugs such as Ozempic, Wegovy and Mounjaro can cost more than $1,000 per month without insurance, according to the National Academy of Medicine. Insurance coverage and discount programs can often reduce these costs by half or more. 

Read more: Tom Brady's new play: Making GLP-1s affordable for healthcare workers

As awareness of GLP-1 drugs and their effectiveness has grown, use among U.S. adults has climbed rapidly. In February 2024, when Gallup first began tracking the figure, 5.8% of adults reported taking the drugs. By October of last year, that share had more than doubled to 12.4%. 

The rising demand for GLP-1 drugs and their high cost are major drivers of higher healthcare premiums, with Blue Cross Blue Shield predicting late last year that premiums could rise by as much as 14% as use increases.

"It doesn't matter if you're a CFO, CEO or head of HR, it is the most talked about topic," said Dr. Snezana Mahon, president of Transcarent, a healthcare navigation platform. "It's a real one that is impacting your bottom line."

Balancing access and cost

Most employers cover GLP-1s for diabetes, but 67% of those surveyed by the Business Group on Health also cover them for weight management. Many are using a range of strategies to ensure appropriate use, including validating clinical eligibility with biometric data, requiring participation in a weight management program, limiting prescribing to certain providers, and excluding select medications from their formularies.

Even so, while more than half of employers covering GLP-1s for weight management expect the drugs to deliver meaningful clinical benefits, few say those gains have yet shown up in aggregate claims data, such as lower obesity rates or reduced need for bariatric surgery, according to the survey.

Read more: GLP-1s and menopause benefits are here to stay — What it means for 2026 budgets

Transcarent, which recently partnered with Pharmaceutical Strategies Group to study drug trends in 2026, found that 72% of employers say high discontinuation rates and weight regain are motivating their decision not to cover GLP-1s. 

Many employers underestimate the role that lifestyle coaching and other cardiometabolic interventions play in helping patients succeed on GLP-1 medications, said Mahon, a clinical pharmacist turned health-tech executive. "It's like handing somebody the keys to a car who has never driven a car," she said. "These drugs are wonderful, but they also come with a lot of side effects."

Rather than making decisions based solely on drug costs, Mahon said employers should evaluate their workforce's health needs, utilization patterns, and available coverage options to determine the most effective approach to GLP-1 management. 

"In this space, there are a lot of levers that can be pulled, so don't give up and throw in the towel," she said. "There is a huge opportunity to balance both access and affordability if you have the right partners, the right technology platform, and the right engagement strategy."