NEW YORK — Rising costs from popular weight-loss drugs are pushing larger U.S. employers to scale back healthcare benefits, according to a new Mercer survey released Wednesday.
Among employers with 500 or more workers, 51% plan to increase cost-sharing in 2026, up from 45% the prior year, with higher deductibles and out-of-pocket maximums likely for retail employees and other frontline workers. The shift comes as 77% of employers cite the cost of GLP-1 weight-loss drugs, such as Wegovy and Zepbound, as a top concern, with spending on these medications straining benefits budgets across the sector.
“More clients are saying they can’t keep covering these medications at current prices,” said Alysha Fluno, pharmacy innovation leader at Mercer, speaking to Reuters. She noted some employers are rethinking coverage despite hopes that weight-loss drugs would reduce long-term health costs.
Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound list for over $1,000 per month, though many patients pay less through health plans. Still, prescription drug costs rose 8% last year, and Mercer forecasts a 5.8% increase in overall health benefit costs for 2025, adding pressure on retail HR departments working to control labor expenses.
The report also signals growing interest in alternatives to traditional pharmacy benefit managers (PBMs), as retailers and other employers seek greater transparency amid regulatory scrutiny over PBM practices. 34% of employers are considering switching PBMs, and 40% are exploring alternative drug pricing models tied to pharmacy wholesale prices.
In a high-profile move that illustrates the trend, CalPERS, the second-largest U.S. public purchaser of health benefits, announced it will switch to CVS Caremark from UnitedHealth’s OptumRx in 2026 under a contract that requires increased transparency.
For retailers, the rising costs tied to GLP-1 drugs are emerging as a strategic workforce issue, with benefit design changes on the horizon as leaders balance employee health offerings with financial pressures in a competitive labor market.
