PepsiCo Cuts Employee Coverage for Weight-Loss Medications

PepsiCo Inc. will stop covering prescription weight-loss medications, including Wegovy and Zepbound, under its employee health insurance plans starting in October. The company stated that removing coverage for these drugs is necessary to maintain a healthcare program that is sustainable and affordable for all employees, citing the medications as one of the fastest-growing costs in its plans.

Express Scripts Pharmacy Benefit Services, a unit of Cigna Group, notified employees of the change. While insurance coverage will end, employees may still access the medications through cash-pay affordability pathways. This decision aligns with a broader corporate trend, as approximately 6% of large employers dropped coverage for similar drugs in 2026 due to budget concerns.

Beyond internal insurance costs, the company is adjusting its business strategy to account for the impact of GLP-1 drugs on consumer behavior. Because users of these medications typically reduce their intake of processed foods, the company is developing portion-controlled options and products with increased protein and fiber to adapt to changing habits.