Starbucks ends GLP-1 drug coverage for workers

Starbucks is ending its coverage of GLP-1 drugs for weight loss, citing rising costs as a key factor in the decision.

The move reflects a growing trend among employers pulling back from coverage for these high-priced medications, which have surged in popularity for treating obesity and type 2 diabetes. GLP-1 drugs like Ozempic and Wegovy can cost thousands per month, putting pressure on company health plans. Employers are now reassessing whether to keep covering them as prescription costs climb and usage grows. Starbucks’ decision follows similar steps by other large companies, including CVS Health, which recently stopped covering Wegovy for weight loss under its commercial plans.

The shift comes as demand for GLP-1 drugs soars, driven by aggressive marketing and growing awareness of their benefits. Eli Lilly and Novo Nordisk, the makers of these drugs, have raised prices repeatedly, making them a financial strain for insurers and employers. A recent report found that employer spending on GLP-1 drugs jumped by nearly 50% in the past year alone. Many companies now face tough choices: keep covering the drugs and risk higher premiums, or drop coverage and risk employee dissatisfaction. Starbucks’ decision signals a broader pullback, even as workers increasingly see these medications as essential for managing weight and related health issues.

Experts warn that the trend could leave many employees without access to these treatments, especially if employers continue dropping coverage. Some workers may turn to alternative treatments or pay out of pocket, which could be unaffordable for many. The move also raises questions about the long-term sustainability of employer-sponsored health benefits in the face of rising drug costs. For now, Starbucks employees using these drugs will need to explore other coverage options or private insurance. The company’s decision may prompt other employers to follow suit, reshaping how weight-loss medications are covered in workplace health plans.