One of America’s largest coffee and café chains has announced it will no longer cover certain prescription weight-loss medications under its employee health insurance plan.
The company told staff in an internal memo that the change takes effect next month. According to the communication, the move was driven by sharply rising healthcare costs and the need to keep overall benefits sustainable for all employees.
The excluded category includes GLP-1 drugs that are commonly prescribed for obesity and weight management. Coverage will continue for other medically necessary uses of the same medicines, such as treatment for diabetes, if prescribed by a doctor and approved under the plan.
In the note to employees, leadership said healthcare expenses across the US have been climbing rapidly, putting pressure on employers to make tough choices. The company added that it remains committed to offering comprehensive health benefits, including mental-health support, preventive care, and wellness programmes.
The decision mirrors a wider trend among large US employers. With insurance premiums and drug prices climbing, many companies are re-evaluating which treatments to include in their plans. Weight-loss drugs in particular have seen demand surge, leading to higher costs for insurers and employers.
Employee reactions online have been mixed. Some staff said they understood the financial rationale but were disappointed by the loss of coverage. Others argued that obesity treatment should be treated on par with other chronic conditions.
The company said employees will receive details on alternative resources and support programmes in the coming weeks.
