PepsiCo Inc. has notified employees that its health insurance plans will no longer cover prescription weight-loss medications starting in October, citing the rapid escalation in costs as the primary driver of the change.
The company informed staff in a notice this week that Wegovy from Novo Nordisk A/S and Zepbound from Eli Lilly & Co. have become among the fastest-growing expenses under PepsiCo’s healthcare programs. The decision aims to preserve the affordability and sustainability of the company’s broader health benefits for all employees, according to the communication.
Employees currently taking these medications will have the option to continue treatment by paying for the drugs out of pocket. Express Scripts Pharmacy Benefit Services, a unit of Cigna Group, highlighted in an email to affected participants that cash-pay affordability pathways for commonly used weight-loss medications have expanded in recent months, providing alternative access routes outside of employer-sponsored plans.
The move reflects a broader shift across corporate America, where companies are reassessing coverage for high-cost weight-loss drugs despite growing demand. PepsiCo’s decision underscores the financial strain such treatments place on employer health plans, even as new therapies gain traction in the market.
