The announcement comes as employers across the United States face rising healthcare expenses, prompting some to reduce insurance coverage or increase employee costs. Walmart, the country’s largest private employer, is introducing the changes during its annual benefits enrollment period, which runs through November 6.
Walmart Expands Prescription Coverage While Limiting Insurance Premium Increases
The new prescription benefit will eliminate out-of-pocket costs for more than 250 medications under most Walmart medical plans. The list includes generic treatments and certain branded drugs used to manage chronic health conditions.
According to CNBC, the covered medications include Novo Nordisk’s Ozempic and Eli Lilly’s Mounjaro, both prescribed for Type 2 diabetes. Employees seeking these treatments must obtain prior authorization before receiving them without charge.
The coverage does not extend to GLP-1 medications prescribed specifically for weight loss. Other major employers have similarly excluded obesity treatments from their insurance plans or recently discontinued coverage as healthcare expenses have increased.
Beyond diabetes medications, Walmart’s expanded list includes certain insulin products, inhalers and treatments for migraines, dementia and cardiovascular conditions.
The retailer is also adjusting employee insurance premiums. Its starting medical plan will cost $39.80 per biweekly pay period, an increase of $1.50. The company said this adjustment is smaller than the increase introduced the previous year.
According to the same source, Walmart employs approximately 2.1 million people worldwide, including around 1.6 million in the United States. The changes form part of a longer effort to improve compensation and benefits following earlier criticism of the company’s wages and healthcare coverage.
New Specialist Care and Paid Leave Benefits Accompany the Prescription Changes
Walmart is also expanding its Centers of Excellence program, which provides access to specialist evaluations and treatment reviews for employees facing certain serious medical conditions.
Beginning in 2027, employees being evaluated for or diagnosed with multiple sclerosis, Parkinson’s disease or amyotrophic lateral sclerosis (ALS) will be eligible for no-cost consultations with specialists at Mayo Clinic or Cleveland Clinic under most company medical plans. The expansion builds on an existing program that provides specialist care for virtually all cancers.
A separate benefit will provide up to 12 weeks of dedicated paid leave for employees whose newborns require admission to a neonatal intensive care unit. According to an October 13 memo from Chief People Officer Donna Morris, the policy takes effect November 17, 2026, and can be combined with existing maternity and parental leave benefits.
Walmart will also retain several existing programs, including 20 no-cost therapy sessions annually, virtual medical services and up to $20,000 in support for fertility treatment, adoption or surrogacy.
The retailer has previously introduced educational assistance and other workforce benefits. Bloomberg reported that starting wages have increased by 93% over the past decade. Employees have until November 6 to complete annual enrollment for the 2027 medical plans. The new neonatal leave benefit begins earlier, while the expanded prescription and specialist coverage takes effect next year.
