Benefit Expansion Overview
Walmart Inc. announced that, effective next year, it will provide no‑cost coverage for more than 250 prescription medications to its U.S. workforce, as detailed in an internal memo from Chief People Officer Donna Morris. The expanded formulary includes the GLP‑1 diabetes drugs Ozempic (Novo Nordisk) and Mounjaro (Eli Lilly) for employees with type‑2 diabetes, subject to prior approval, as well as full coverage for insulin.
In addition to GLP‑1s, the plan adds generic and select brand‑name drugs across several therapeutic areas, including cardiovascular treatments, migraine therapies, dementia medications, and inhalers. The retailer also broadens its specialized medical‑care program: starting in 2027, employees can obtain second‑opinion evaluations or treatment for multiple sclerosis, Parkinson’s disease, or amyotrophic lateral sclerosis (ALS) from the Mayo Clinic or Cleveland Clinic, extending a service that previously covered only cancer cases.
Walmart is further enhancing its parental‑support benefits by offering 12 weeks of paid leave to employees whose newborns require care in a neonatal intensive care unit (NICU). This addition builds on a decade‑long effort that has seen the company raise starting wages by 93 percent and introduce education benefits for frontline staff.
While the expanded drug coverage will increase the company’s health‑care spend, Walmart indicated that employee insurance premiums will rise only modestly in 2027, and the increase is expected to be smaller than the premium adjustment made in 2026, owing to operational efficiencies derived from internal health‑care testing.
The initiative positions Walmart, the nation’s largest private employer, as a counter‑trend to other U.S. corporations that are scaling back benefits or eliminating GLP‑1 coverage amid rising medical costs. By absorbing a larger share of drug expenses, Walmart aims to manage cost pressures while supporting talent retention in a tight labor market.