14% of U.S. employers plan to drop GLP-1 coverage in 2027

About 14% of U.S. employers have already dropped or plan to drop coverage for GLP-1 drugs in 2027, according to a Business Group on Health survey released Tuesday. The group expects employer healthcare costs to rise 9.2% in 2027 without cost-management changes, up from 8.5% in 2026, while two-thirds of respondents reported increased use of the drugs. Coverage for GLP-1 weight-loss drugs fell to 60% of employers in 2026 from 72% in 2025. Pharmacy spending accounted for 25% of employer healthcare costs and is expected to increase 12% in 2027. Employers are also encouraging cheaper biosimilars, reconsidering coverage for complex or specialty drugs and exploring alternative pharmacy arrangements. Cancer was the most frequently cited cost driver, named by 70% of firms, up from 58% in 2025, followed by musculoskeletal and cardiovascular conditions.

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