Walmart confirmed plans to cover more than 250 prescriptions at no cost to employees starting in 2027, including some insulin, inhalers, and GLP-1 medications for diabetes. The coverage will include Novo's Ozempic and Eli Lilly's Mounjaro for Type 2 diabetes patients after a new prior authorization requirement.
The nation's largest private employer, which has roughly 1.6 million U.S. workers, says the expanded benefits aim to attract and retain employees amid an environment where many employers are raising healthcare costs and cutting benefits. The announcement precedes the November 6 close of open enrollment for Walmart staff.
Walmart will not cover GLP-1 medications for weight loss, a decision that aligns with other large employers cutting or restricting those treatments to manage rising healthcare expenses.
The benefits expansion includes additional offerings beyond prescription coverage. Starting in 2027, employees under most plans can access specialists at Mayo Clinic or Cleveland Clinic for second opinions on rare conditions such as ALS, multiple sclerosis, and Parkinson's disease, expanding an existing cancer specialist benefit. The company is also adding 12 weeks of neonatal intensive care unit leave for parents, stacked on top of existing parental and maternity leave.
Walmart is minimizing premium increases for employees. The starting plan rate rises to $39.80 per pay period, a $1.50 increase that the company said is smaller than the previous year's increase. The retailer employed roughly 2.1 million associates worldwide as of the end of fiscal year 2026.
In a statement, Walmart said the changes reflect "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 announcement comes as the company continues efforts to boost employee compensation after previous criticism of its healthcare benefits and wages.