Starbucks is set to stop covering GLP-1 medications prescribed for weight loss under its employee health plans, adding to signs that employers are reassessing one of the fastest-growing areas of prescription drug spending, according to SHRM.
Beginning in October, benefits-eligible Starbucks employees will no longer have coverage for GLP-1 drugs when prescribed specifically for weight loss, according to reports. Coverage can remain available when the medications are prescribed for other medical conditions. The decision comes as employers face rising health benefit costs and growing use of GLP-1 medications such as Wegovy and Zepbound.
More Employers Are Questioning GLP-1 Coverage
Starbucks is not alone in reconsidering the benefit. Mercer reported in June that 6% of large employers dropped GLP-1 coverage in 2026. Among employers that currently cover GLP-1 medications for weight management, a Business Group on Health survey found that 72% expect to continue the coverage in 2027, while 10% said they are unlikely to do so.
Some companies are taking a middle-ground approach rather than eliminating coverage. Employers are considering higher eligibility thresholds, additional clinical requirements and other measures designed to control spending.
The Cost Is Becoming Harder to Ignore
Health benefit expenses are projected to rise 6.7% in 2026, pushing average annual costs above $18,500 per employee, according to Mercer.
GLP-1 medications are contributing to the increase. GLP-1 drugs now account for roughly 20% of prescription drug spending, while total GLP-1 spending increased about 50% in 2025 as utilization grew.
For employers, the question is increasingly whether the upfront expense will eventually produce enough savings through better health outcomes to justify continued coverage.
Employers Are Still Waiting for the Long-Term Data
GLP-1 medications have been associated with improvements in several obesity-related health conditions, but employers are still trying to determine what those outcomes mean for their own healthcare costs over time.
That uncertainty is making coverage decisions more complicated. Some companies view GLP-1 access as a valuable employee benefit that can help with recruitment and retention, while others are focused on containing pharmacy spending.
For now, the employer market appears to be splitting between companies maintaining coverage, those adding restrictions and a smaller group dropping weight-loss coverage altogether. More competition among GLP-1 drugs could eventually put downward pressure on costs, but employers are still waiting to see how much it changes the equation.
