Walmart plans to cover 250+ drugs, including some diabetes medications, at no cost for employees

Walmart Inc., the largest private employer in the United States, announced a workforce benefit expansion that will cover more than 250 prescription medications at no cost. Chief People Officer Donna Morris disclosed the move in a memo to staff, obtained by Bloomberg. The new coverage includes diabetes medications such as Novo Nordisk’s Ozempic and Eli Lilly’s Mounjaro, contingent upon prior authorization.

This initiative comes amid rising medical costs, prompting many competitors to reduce benefits or drop coverage for GLP-1 drugs. Walmart, known for its proactive healthcare planning, aims to increase coverage without raising premiums for employees next year. The updated plan will fully cover generic and select brand-name drugs in various health categories, including cardiovascular treatments, migraine therapies, dementia medications, inhalers, and insulin.

This strategic shift reflects Walmart’s effort to manage costs while retaining talent in a competitive job market. Beyond prescription drug coverage, Walmart is expanding specialized medical care programs. Starting next year, workers can receive second opinions from the Mayo Clinic or Cleveland Clinic for conditions like multiple sclerosis, Parkinson’s disease, or ALS, a service previously limited to cancer cases.

The retailer is also introducing a parental support benefit providing 12 weeks of paid leave for employees whose newborns require treatment in neonatal intensive care units. These enhancements follow a decade-long commitment to improve compensation and benefits for frontline workers, including a 93% increase in starting wages and the addition of education benefits.

While employee insurance premiums will rise next year, the increase will be smaller than the 2026 rate hike. The modest premium adjustment results from internal healthcare cost-saving measures, allowing Walmart to absorb expenses that are currently challenging for many corporations.