Starbucks will stop covering GLP-1 drugs for weight loss in October, joining Allina Health and PwC in limiting the benefit as costs climb. GLP-1 drugs accounted for 11.4% of corporate claims last year, up from 6.9% in 2023.
Starbucks will stop covering GLP-1 medications prescribed for weight loss starting in October, a reversal that comes as employer spending on the drugs surges. The coffee chain's health plans will no longer cover the drugs for weight loss for benefits-eligible employees, though coverage will continue for other conditions such as diabetes. Starbucks offers health benefits to full- and part-time employees who work at least 20 hours a week.
A Starbucks spokesperson confirmed the decision, which was reported earlier by Business Insider, and declined to comment further. Starbucks carries an Alpha Score of 45 out of 100 on AlphaScala, reflecting mixed market sentiment. The stock page is SBUX stock page.
The move follows a pattern seen at other large employers. Allina Health, a Minnesota-based health system, ended coverage for GLP-1 weight-loss prescriptions 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. PwC has also reportedly pulled back.
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. The survey found that 36% of corporate employers covered the drugs for both diabetes and weight loss in 2026, while 60% covered them only for diabetes.
The pullback comes as employers face 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 benefits-consulting firm. The growing use of costly GLP-1 medications is one of the main drivers of the increase, Mercer said.
Not all employers are shying away. This week Bank of America CEO Brian Moynihan said the bank spends more than $250 million a year on GLP-1 coverage for employees, roughly 13% of its more than $2 billion annual healthcare budget. He said the bank views the expenditure as an investment in employee health. Bank of America's Alpha Score is 66 out of 100, indicating moderate sentiment. Its stock page is BAC stock page.
The contrast highlights a divergence in corporate strategy. For Starbucks, the decision could affect employee recruitment and retention in a tight labor market. The coffee chain has long marketed its benefits package, including health insurance for part-time workers, as a differentiator. Removing weight-loss drug coverage may push some employees toward other plans or out-of-pocket spending.
Cost pressures are intensifying. Mercer projects health-benefit costs per employee will rise 6.7% this year, with GLP-1 drugs a major factor. The IFEBP survey noted that the drugs' share of claims doubled in two years. Employers that continue coverage for weight loss face rapidly escalating pharmacy costs, while those that limit it risk backlash from employees who have come to expect the benefit.
Starbucks' change takes effect in October. The company has not disclosed how many employees currently use GLP-1 drugs for weight loss or what the projected savings are. The decision applies only to weight-loss prescriptions; coverage for diabetes and other approved uses remains in place.
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