PepsiCo Inc. will remove prescription weight-loss medications from its employee health insurance plans starting in October, citing rising costs as the primary driver of the decision.
The company notified affected employees that Wegovy and Zepbound—manufactured by Novo Nordisk A/S and Eli Lilly & Co., respectively—will no longer be covered under its health plans. PepsiCo joins a growing number of corporations scaling back coverage for these high-demand treatments, which have driven significant cost increases in employer-sponsored health programs.
Employees currently using these medications can continue treatment by paying out-of-pocket through Express Scripts Pharmacy Benefit Services, a unit of The Cigna Group. The insurer noted that direct-pay alternatives for commonly used weight-loss drugs have become more accessible in recent months, offering a lower-cost option for individuals.
In an internal email obtained by Bloomberg News, PepsiCo stated that prescribed weight-loss medications have become one of the fastest-growing cost categories in its health plans. The company emphasized that removing coverage would help maintain a sustainable and affordable health program for all employees.
The move reflects broader industry trends as employers and insurers reassess coverage amid the surge in demand for GLP-1-based obesity treatments. PepsiCo’s decision follows similar adjustments by other major corporations seeking to balance rising healthcare expenses with employee benefits.
