Starbucks is ending GLP-1 coverage for weight loss as employer costs climb

9 hours ago 10

Starbucks is pulling back coverage for weight-loss drugs, a reversal that comes as employers' spending on popular GLP-1 medicines soars.

Starting in October, the Seattle-based coffee chain's health plans will no longer cover GLP-1 medications prescribed for weight loss for benefits-eligible employees, though the drugs may still be covered for other conditions. Starbucks offers health benefits to full- and part-time employees who work at least 20 hours a week.

A spokesperson for Starbucks confirmed the decision, which hasn't previously been reported, and declined to comment further.

Starbucks' move reflects a broader recalibration of a benefit that has rapidly reshaped corporate health plans. Originally developed for diabetes, GLP-1 drugs have become highly sought-after treatments for obesity, which is associated with a range of chronic health conditions. Soaring costs, however, are prompting some employers to limit eligibility.

GLP-1 drugs accounted for 11.4% of corporate employers' total annual claims last year, up from 6.9% in 2023, according to a 2026 survey by the International Foundation of Employee Benefit Plans, a nonprofit. Further, 36% of corporate employers covered the drugs for both diabetes and weight loss in 2026, while 60% covered them only for diabetes, the findings show.

The pullback comes as employers confront faster-rising health costs more broadly. Average health-benefit costs per employee rose 6% last year and are projected to rise 6.7% this year, according to Mercer. The growing use of costly GLP-1 medications is one of the main drivers of the increase, the benefits-consulting firm said.

Other large employers have stopped covering GLP-1s for weight loss, too, including Allina Health and, reportedly, PwC.

Allina Health, a Minnesota-based health system, ended coverage for GLP-1 medications prescribed for weight loss for employees and their covered dependents in January 2025. The company said at the time that continuing the benefit would have significantly increased medical premiums. A spokesperson for Allina Health was not immediately available for comment.

Not all employers are shying away from covering GLP-1 drugs for obesity. Earlier this week, Bank of America CEO Brian Moynihan said the bank spends more than $250 million a year on GLP-1 coverage for employees, or roughly 13% of its more than $2 billion annual healthcare budget. He said the bank views the expenditure as an investment in employee health.

Sarah E. Needleman covers leadership and the workplace for Business Insider.Previously, she was a reporter for The Wall Street Journal for more than two decades, covering technology companies, entrepreneurship, and recruiting.In 2022, Sarah received an honorable mention with WSJ colleagues for their coverage of workplace misconduct at Activision Blizzard from the Society for Advancing Business Editing and Writing.Sarah graduated from Rutgers University in 1997 with a bachelor's degree in journalism. She lives with her husband, daughter, and fur child (an Australian labradoodle) in northern New Jersey.Have feedback or a tip?Contact Sarah on Signal at saraheneedleman.13, or email her at [email protected].Some of Sarah’s scoops, exclusives, and most-read articles include: 'Entitled,' 'complacent,' and 'sloppy': Inside the workplace tension at the world's largest HR organizationShe won a religious exemption from using AI at work. The Pope's remarks could fuel similar appeals.The CEO behind 'Grand Theft Auto' doesn't drink, smoke, or play video gamesPTO, parental leave, pensions: Even the most prized benefits are on the chopping blockGoodbye, middle managers. Hello, 'player-coaches' and 'org leads.'She used to manage 3 employees. Now she oversees 24. Welcome to the age of the megamanager.America's new sink-or-swim era is hereInside the AI divide roiling video game giant Electronic ArtsMeet your new office bestie: ChatGPT