As employers pull back on GLP-1s, Andel and Novo offer a workaround. Facing steep 2027 cost increases, employers are narrowing obesity drug coverage, while direct-to-employer models let them cap what they spend. As more employers scale back coverage of glucagon-like peptide-1 (GLP-1) receptor agonists for obesity heading into 2027, a new arrangement will let companies help workers pay for semaglutide (Wegovy; Novo Nordisk) outside of insurance through a collaboration between direct-to-employer marketplace Andel and Novo Nordisk, according to a .[1] The deal covers both injectable semaglutide, including the higher-dose semaglutide HD, and the once-daily semaglutide pill. Each employer chooses how much to contribute toward treatment, which lowers what employees pay out of pocket while the employer keeps control over its total spending. Andel handles the process through its app, from prescription verification to delivery. 53% of employers cover GLP-1s for weight loss, down from 57%. The announcement lands in the middle of open enrollment, as more companies drop GLP-1 weight-loss coverage entirely or offer less generous payouts, reported.[2] A WTW survey of employers with more than 100 workers, fielded over the summer, found that 53% cover GLP-1s for weight loss, down from 57% in 2025 and the first decline in 3 years. Another 16% said they cover the drugs now but are considering removing them, up from 9% last year. Cost is driving the retreat. Preliminary results from, which included more than 1800 employers, project an 8.2% increase in employer health benefit costs in 2027, the largest since 2003, with rising GLP-1 use accounting for a full percentage point of that growth.[3] projects an 11% medical trend for 2027 before plan changes, with pharmacy expected to make up nearly 27% of total health care spending.[4] Employers move GLP-1 spending outside the pharmacy benefit. Rather than cutting access outright, some employers are shifting it outside the plan. WTW found that 8% of employers now direct workers to buy GLP-1s through manufacturer direct-to-consumer programs such as NovoCare or LillyDirect, and 28% are planning or considering it.[2] The lowest-dose self-pay price for Wegovy is currently $149 a month for the pill and $199 a month for the injection, though Novo Nordisk has said that promotional pricing may change in 2027. Andel's arrangement fits a related approach, the direct-to-employer model, in which employers drop coverage through their pharmacy benefit manager (PBM) but reimburse part of employees' out-of-pocket costs. The Novo Nordisk deal broadens a platform that, as of May, already worked with Eli Lilly's Employer Connect program, Jay Bregman, founder and CEO of Andel, said in an interview with(R) at Asembia's AXS26 Summit.[5] Andel receives prescriptions directly from any provider's electronic medical record, matches them against the employer's eligibility file, and lets members pay through its app net of the employer's contribution, which can range from about $100 per fill to 100% on a month-to-month basis. Bregman described the model as a parallel pathway that runs alongside an employer's existing PBM rather than displacing it. Andel describes itself as a cooperative marketplace that runs on tax-free dollars rather than insurance. Its discount drug program is not insurance, and participants pay the discounted charges themselves.[1] Tom Scales, senior vice president of market access and public affairs at Novo Nordisk, said the collaboration "creates another way for employers to support" patients taking the next step toward treatment. Bregman framed the pitch around the same cost control that employers say is driving their coverage decisions. "Employers want to help staff get well, but they need control over the bill and a beautiful member experience powered by native apps and Andel's digital pharmacy platform," he said. References

Some employers begin subsidizing rather than covering GLP-1 drugs. By Fran Kritz With increasing numbers of employees interested in trying glucagon-like peptide-1 receptor agonist (GLP-1) drugs for weight loss, many employers have found that the high demand has made the cost of insurance coverage for the medications too steep. In fact, a survey of 105 employers released by the Business Group on Health found that 10% were likely to discontinue coverage next year. While many employers deal with the high cost by not covering the drugs at all, several companies have launched programs that allow employers to put cash into employee accounts set up for the drugs, which reduces patients' out-of-pocket spending. "As an employer, we're constantly looking for ways to make our health benefits more impactful and easier to use," said Angie Nelson, PharmD, the senior vice president of pharmacy at the Midwestern grocery chain Hy-Vee, which recently signed on to GoodRx Employer Direct. Employer Direct launched in February to help employers subsidize GLP-1 drugs. (The two companies declined to share the subsidy amounts.) "[The GoodRx program] gives us the flexibility to support access to high-impact medications while keeping our overall [prescription drug benefit] plan structure intact," Dr. Nelson told Specialty Pharmacy Continuum. At least two other companies, Andel and RxSaveCard, have launched similar employer subsidy programs since the beginning of 2026. Washington University, for example, is using RxSaveCard to help employees afford semaglutide (Wegovy, Novo Nordisk) and tirzepatide (Zepbound, Lilly) and offers up to $350 per month toward the cost. Purchases can only be made through a dedicated RxSaveCard portal, which purchases the drugs through the drug manufacturers, and not at local pharmacies. In March, Andel launched a savings platform that at press time could be used only for the Wegovy "KwikPen." The company plans to add other GLP-1 options. Employees receive an invite from employers who have signed onto the program, and physicians send the prescription directly to Andel. According to coverage in Inc. Magazine, employer subsidies can run $50 to $100 per prescription. Subsidies as low as $50 per monthly prescription still offer relief for patients, and cash prices have come down for many patients from the high of more than $1,000 per month when the drugs were first introduced. For self-paying customers, Novo Nordisk currently sells the lowest dose of its weight-loss drug Wegovy (both in pill and injectable forms) for $149 per month, as does Lilly for its weight-loss pill orforglipron (Foundayo). Data from health research firm KFF's 2026 Employer Health Benefits Survey suggest that more firms may opt out of insurance coverage for the weight-loss drugs, which means any subsidy amount would be helpful to employees, although some will still not be able to afford the monthly cost of GLP-1 drugs. The KFF survey found that 43% of companies with 5,000 or more employees offered the coverage in 2025, almost a 54% increase over the previous year. However, among the employers who didn't cover GLP-1s for weight loss, a majority said they were "not likely" to begin covering the drugs within the next 12 months and only 1% said they were "very likely" to do so. "Discussions with individual employers suggest that some have stopped covering these medications for weight loss, with a few even tightening up coverage for those with diabetes," the authors wrote. "While concerns over the negative health impacts of obesity remain, they are now in competition with concerns about the high cost and proper use of GLP 1 agonist medications, particularly at a time when other cost pressures may be growing." In March, Lilly became directly involved with employer subsidies by launching Employer Connect, a program that includes more than 15 outside pharmacies and telehealth firms. Employers can choose their level of subsidies and patient engagement, including telehealth firms, to prescribe the drugs. "By enabling coverage outside traditional benefit designs, we lower barriers to treatment and give employers greater control over how they support employee access to obesity care," Kevin Hern, the senior vice president at Lilly Employer, told SPC. He said, "This innovation can help employees access authentic obesity management medicines with more affordable out-of-pocket costs." Glucagon-like peptide-1 drugs were a hot topic at AMCP Nexus 2025, with three presentations spotlighting the... Pharmacists may have to deliver the loss of coverage news to some patients and be prepared to discuss payment options. According to Reuters, Cigna stopped coverage for GLP-1 drugs for its own employees as of July 1, and recommends that its employees who want to take the drugs check TrumpRx and the manufacturer website for cash prices. However, Medicare beneficiaries got better news on July 1. That's when Medicare, under its new Bridge program, began covering several GLP-1 drugs for patients who meet eligibility criteria. The copay will be $50 each month, and the program will run through 2027 for now. Doctors need to send a prescription to a patient's pharmacy, and the pharmacy will then contact the physician to request prior authorization from Medicare. Once received, the doctor sends the authorization to the pharmacy, which can then dispense the GLP-1 drug.