Starbucks ends employee coverage for these medicines amid rising US health costs
Starbucks will cease covering GLP-1 weight-loss drugs for employees starting October. This decision reflects rising costs and a broader employer trend in benefits. GLP-1 drugs, initially for diabetes, are now popular for obesity treatment. Other companies like Allina Health and PwC have also adjusted their coverage policies. However, Bank of America views GLP-1 coverage as a vital employee health…
Starbucks has decided to discontinue coverage for certain GLP-1 weight loss medications under its employee health plans, effective October. These drugs, originally developed for diabetes treatment, have gained popularity in obesity management, but Starbucks will no longer include them in weight-loss coverage. The decision comes as a response to the rising costs of health benefits and the substantial spending on GLP-1 drugs by employers.
In 2025, GLP-1 drugs accounted for 11.4% of corporate employers' total annual claims, up from 6.9% in 2023, and health-benefit costs per employee have increased by 6% last year, with further projections of a 6.7% rise this year, with GLP-1 usage cited as a significant contributor. Other large employers have also altered their coverage, with Allina Health ending GLP-1 coverage for weight loss in January 2025 and PwC reportedly making similar changes.
Meanwhile, some companies are increasing their investment in GLP-1 coverage, with Bank of America CEO Brian Moynihan stating that the bank spent over $250 million annually on GLP-1 coverage, considering it an investment in employee health.
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