News|Articles|November 1, 2026

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 press release.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, CNBC 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 Marsh's 2026 National Survey of Employer-Sponsored Health Plans, 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 WTW 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 Pharmacy Times^® 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