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PepsiCo and Cigna Reduce GLP-1 Weight-Loss Drug Coverage to Manage Rising Healthcare Costs

PepsiCo and Cigna have announced reductions in coverage for GLP-1 weight-loss medications to manage escalating prescription costs. PepsiCo will continue to cover the drugs for diabetes management but has cut weight-loss coverage for its employees, while Cigna confirmed it stopped covering GLP-1s for weight loss through its own health plan on July 1. These medications, which mimic the natural GLP-1 hormone to regulate appetite and blood sugar, have seen a surge in demand since 2014. However, research indicates that many employers find the utilization of GLP-1s higher than expected, significantly increasing prescription drug costs. While the drugs are effective at reducing cardiovascular disease risk, they can be costly, with out-of-pocket costs reaching over $1,000 per month for some patients. To address these costs, some employers are implementing clinical guardrails, such as requiring prior authorization based on BMI. Experts suggest that while cutting coverage may reduce short-term pharmacy spending, the long-term health benefits of managing obesity and its associated comorbidities may still provide significant value to the workforce.

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