PepsiCo Inc. will remove coverage for prescription weight-loss drugs from its employee health plans starting October 1, citing the rapid rise in associated costs as the primary driver of the decision.
The company notified affected employees via internal communications reviewed by Bloomberg News, stating that prescription weight-loss medications have become one of the fastest-growing cost categories in its healthcare plans. PepsiCo described the move as necessary to maintain a sustainable and affordable healthcare program for all employees.
The decision impacts coverage for medications such as Wegovy and Zepbound, produced by Novo Nordisk A/S and Eli Lilly & Co., respectively. Express Scripts Pharmacy Benefit Services, a unit of Cigna Group, confirmed the change in a separate communication to employees, noting that newly available cash-pay affordability pathways now provide alternative options for those seeking to continue their treatments outside company plans.
PepsiCo did not disclose the estimated annual cost impact of the decision or the number of employees currently using these medications under its health plans. The company also did not respond to requests for comment on potential future adjustments to its healthcare benefits structure.
