Walmart will cover more than 250 prescriptions at no cost to employees starting in 2027, including select GLP-1 medications, insulin and inhalers, the company confirmed to CNBC. The expansion marks one of the retailer’s largest benefits updates in years and comes as other major employers scale back similar coverage to manage healthcare costs.
The no-cost GLP-1 coverage applies specifically to Novo Nordisk’s Ozempic and Eli Lilly’s Mounjaro, but only for employees with Type 2 diabetes who go through a new prior authorization process, according to CNBC. Walmart does not cover those same drugs when prescribed for weight loss.
What Walmart Announced
Walmart employs roughly 2.1 million associates worldwide, with about 1.6 million of them in the United States, as of the end of fiscal year 2026. The new prescription coverage, along with the diabetes-specific GLP-1 benefit, takes effect in 2027 for eligible workers enrolled in the company’s health plans.
The retailer is also raising the rate for its starting health plan by $1.50 per pay period, bringing it to $39.80. Walmart framed the overall package as a balance between adding benefits and keeping premium increases modest.
“The steps we’re taking are based on years of planning and trying new things, which is allowing us to make meaningful improvements for associates without slashing benefits or significantly raising premiums,” the company said, according to CNBC.
What It Means For Employees
The benefit is built for Walmart’s own workforce, not the general public shopping at its stores. Employees with Type 2 diabetes who clear the prior authorization process will not pay out of pocket for Ozempic or Mounjaro, while other covered prescriptions include certain insulins and inhalers among the list of more than 250 drugs.
Walmart is also expanding an existing partnership with Mayo Clinic and Cleveland Clinic starting next year, giving employees access to second opinions from specialists for rare conditions such as ALS, multiple sclerosis and Parkinson’s disease. Separately, the company is adding 12 weeks of neonatal intensive care unit leave for parents, which can be taken in addition to existing parental and maternity leave.
Open enrollment for Walmart employees to select their 2027 benefits closes on Nov. 6.
Context Behind The Expansion
Walmart’s move stands apart from a broader trend among large employers, many of which do not cover GLP-1 medications for obesity or have recently dropped that coverage altogether to control rising healthcare spending, according to CNBC. Walmart is positioning its expanded benefits package as a way to attract and retain workers at a time when other companies are offsetting higher healthcare costs through steeper prices or thinner plan benefits.
What’s Next
Walmart employees have until Nov. 6 to complete open enrollment and select coverage for 2027, when the no-cost prescription benefit, the expanded specialist second-opinion program and the new NICU leave policy are all set to take effect. Walmart has not detailed the exact mechanics of the prior authorization process employees with Type 2 diabetes will need to complete to access the GLP-1 coverage.
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