PepsiCo Scraps Coverage of Weight-Loss Drugs for Employees

Some PepsiCo Inc. employees were notified this week that weight-loss drugs will no longer be covered by their company health insurance as of October due to skyrocketing costs.

“Prescription weight-loss medications have become one of the fastest-growing costs in the PepsiCo plans,” according to an email sent to some employees that was viewed by Bloomberg News. “Removing coverage for prescription weight-loss drugs enables us to maintain a healthcare program that is sustainable and affordable for all PepsiCo employees.”

The maker of Mountain Dew, Cheetos and Doritos is joining other companies that have pulled back on coverage for weight-loss drugs, which include blockbusters such as Novo Nordisk A/S’ Wegovy and Eli Lilly & Co.’s Zepbound. While demand for the treatments remains high, insurance companies and employers have decried their long-term cost.

PepsiCo employees can keep taking their medications by paying outside the company plans, according to the email, which was sent by Express Scripts Pharmacy Benefit Services, a unit of Cigna Group. It added that “many commonly used weight-loss medications now have cash-pay affordability pathways that were not available previously to individual patients.”

PepsiCo didn’t immediately respond to a request for comment.

Growth in prescriptions for GLP-1 drugs have moderated in recent months, Cigna Chief Executive Officer Brian Evanko said in a late July earnings call. The insurer’s unit that manages drug benefits has noted coverage declines and slower utilization growth compared to prior periods, executives said at the time.

About 6% of large employers already dropped coverage for weight-loss drugs in 2026, according to a recent survey from consulting firm Mercer, reflecting mounting concerns about the medications’ long-term budget impact. Another 5% said they’re planning to drop coverage in 2027.

Suppressed Appetites

In addition to the cost of covering GLP-1s, PepsiCo is also contending with their impact on consumer behavior, as users tend to eat less while eschewing sodium- and sugar-laden processed foods for supplements, protein and lighter fare. Grocery spending has declined 5.5% in households with GLP-1 users, according to PwC research.

PepsiCo Chief Executive Officer Ramon Laguarta has said that the company assumes there will be a broader adoption of GLP-1 medicines. It’s responding with products that have more protein and fiber, portion-controlled options and drinks aimed at boosting hydration.

“We’re very optimistic on how PepsiCo can play in that new reality with the consumer,” Laguarta said on a call with analysts in February. “I think there are more opportunities than threats.”