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 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
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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 timethat 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 <a href="https://healthylife7.com/proposed-legislation-affecting-healthcare-consolidation-insights/” title=”Proposed Legislation Affecting Healthcare Consolidation | Insights”>healthcare budget.He said the bank views the expenditure as an investment in employee health
