PepsiCo to end employee coverage for weight-loss drugs

PepsiCo Inc. will end insurance coverage for prescription weight-loss medications for some employees starting in October. The decision follows a surge in costs associated with GLP-1 drugs, which the company identified as one of the fastest-growing expenses within its healthcare plans.

Employees were notified via email from Express Scripts, a pharmacy benefit manager owned by Cigna Group. The communication stated that removing coverage is necessary to maintain a healthcare program that remains sustainable and affordable for the entire workforce. Workers who wish to continue using these medications can do so by paying outside of the company plans, with the notice suggesting that new cash-pay affordability pathways are now available to individual patients.

PepsiCo is part of a broader trend among large employers to reduce or eliminate coverage for blockbuster weight-loss treatments, such as Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound. According to data from consulting firm Mercer, approximately 6% of large employers have already dropped weight-loss drug coverage for 2026, with another 5% planning to do so in 2027. Other industry data indicates that coverage among large employers fell to 60% this year from 72% the previous year.