Walmart is set to expand its employee healthcare benefits in 2027 by covering over 250 prescription medications at no cost, including certain insulin products, inhalers, and GLP-1 diabetes treatments. The company confirmed this move to CNBC, highlighting that popular diabetes injections such as Novo Nordisk’s Ozempic and Eli Lilly’s Mounjaro will be available without charge to employees with Type 2 diabetes, provided they receive prior authorization. However, these GLP-1 drugs will not be covered for weight loss purposes, aligning with policies from other large employers trying to manage healthcare expenses.

This benefit enhancement is part of a broader effort by Walmart to attract and retain workers by improving compensation and healthcare coverage amid a challenging labor market. The company, the largest private employer in the U.S. with approximately 1.6 million domestic workers, has increased premiums minimally, raising rates by only $1.50 per pay period to $39.80 for its starting health plan—a smaller increase compared to last year. Walmart’s initiative comes just weeks before the company’s open enrollment deadline on November 6.

In addition to expanded prescription coverage, Walmart is extending an existing benefit that allows employees to access cancer specialists at the Mayo Clinic or Cleveland Clinic for second opinions. Starting next year, this benefit will include specialist consultations for rare diseases such as ALS, multiple sclerosis, and Parkinson’s. The company is also introducing up to 12 weeks of neonatal intensive care unit leave for parents, which can be taken in addition to regular parental and maternity leave.

Walmart emphasized that these improvements are the result of careful planning and experimentation over several years, enabling the company to enhance benefits significantly without cutting coverage or sharply increasing premiums. This strategic approach follows prior criticism of its wages and healthcare offerings, reflecting Walmart’s commitment to supporting its vast workforce amid ongoing economic pressures in the retail sector.