US Employers Plan to Drop GLP-1 Drugs by 2027

By 2027, approximately 14% of employers in the United States intend to cease covering GLP-1 weight-loss drugs. This decision stems from a significant increase in healthcare costs, with projections showing a 9.2% rise in 2027 if no cost-management strategies are implemented. This is an increase from the 8.5% projected for 2026.

Many employers are observing a rise in the utilization of these drugs. To mitigate expenses, companies are exploring various measures. These include encouraging the use of more affordable biosimilar alternatives and potentially reducing coverage for complex specialty drugs. Pharmacy costs, which constitute 25% of employer healthcare spending, are expected to increase by 12% in 2027.

The survey also revealed that cancer is the most significant driver of healthcare spending, cited by 70% of firms. Musculoskeletal and cardiovascular conditions follow as major cost contributors, often requiring more complex and expensive treatments. These cumulative cost pressures are pushing employers to re-evaluate their benefits strategies.