Starbucks is ending GLP-1 coverage for weight loss as employer costs climb
Starbucks will stop covering the GLP-1 drugs for weight loss, adding to a broader employer retreat from an increasingly costly benefit.
Starbucks has announced it will discontinue coverage for GLP-1 drugs prescribed for weight loss as part of its benefits package for eligible employees, effective October. The coffee chain's decision follows a rise in health care spending on these medications. While GLP-1 drugs are primarily used for diabetes treatment, they have gained popularity in the obesity market.
Starbucks' health plans currently cover full- and part-time employees working at least 20 hours per week. However, the company's move aligns with a broader trend among employers grappling with rapidly increasing health care costs. GLP-1 drug coverage accounted for 11.4% of corporate employers' total annual claims last year, up from 6.9% in 2023.
Some employers, like Bank of America, are continuing to invest heavily in GLP-1 coverage, with CEO Brian Moynihan emphasizing it as an investment in employee health. Other large employers, such as Allina Health, have also stopped covering GLP-1 drugs for weight loss, citing the significant impact on medical premiums.
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