NEW YORK, June 11 (Reuters) - Some employers are planning to

drop coverage of GLP-1 drugs for weight loss next year as more

people take the medications, counteracting some savings from

lower prices for Novo Nordisk's Wegovy and Eli

Lilly's ( LLY ) Zepbound and Foundayo.

About 10% of employers who now cover GLP-1 drugs for

weight-loss said they planned to drop the drugs in 2027,

according to the Business Group on Health, a policy research

group for large employers.

A second survey by benefits consultancy Mercer said 5% of

large employers -- which it defines as employing over 500 people

-- plan to drop coverage of the drugs in 2027.

Mercer said 44% of companies with more than 500 employees

cover the drugs for obesity. Data from the Business Group on

Health show 67% of large employers cover GLP-1s in 2026.

Health insurer Cigna ( CI ) ceased coverage of the

weight-loss treatments for its own employees effective July,

Reuters first reported this month, saying they could buy the

medicines elsewhere.

Newer pills for weight loss, as well as injections from Novo

and Lilly, are available through the drugmakers' own websites at

discounted prices, driven by a deal with the Trump

administration for its site TrumpRx.gov.

In January, Novo launched the Wegovy pill and Lilly began

selling its Foundayo pill in April, both of which start at about

$149 per month.

Lauren Remspecher, a director at Purchaser Business Group on

Health, said many employers are still concerned they are not

seeing the same savings in their deals with pharmacy benefit

managers -- industry middlemen who negotiate prices for large

companies and health plans -- as customers who purchase directly

and pay cash.

"One advantage of having the direct-to-consumer and some of

the government-negotiated pricing more transparent is that now

employers can see how much more they're paying and where there

is an opportunity for improvement," said Remspecher.

INCREASED DEMAND WITH THE PILLS

Demand for the drugs has increased this year due to the oral

options, attracting people who have never before tried GLP-1s,

which has kept employer costs high, according to five industry

experts.

Several industry experts said employers are seeing people

stay on GLP-1s long term and a larger pool of people eligible

for the medications, when compared to other treatments.

Foundayo and Wegovy have been shown to reduce weight by 11%

and 14%, respectively, less than with the injected drugs but

preferable for patients who fear needles.

"Even though we have seen the unit cost come down, the

patient population keeps growing," said Louis Zollo, a pharmacy

practice leader at healthcare consultancy Segal.

Benefits consultancy Aon has observed injectable customers

shifting to oral versions, as well as new GLP-1 patients

choosing the pills. Aon said it too expects GLP-1 coverage to

decrease next year.

Dan Mendelson, CEO of Morgan Health, a healthcare unit owned

by JPMorgan, said the pills are set to push the cost of the

individual treatments down this year.

"But every year there's going to be market growth," he said.

"There's going to be more people taking these drugs, so on

aggregate this still represents a major cost driver for

employers."