Walmart (WMT) is overhauling its employee benefits package for 2027. The changes go far beyond what most large retailers have been willing to commit to.
More than 250 prescription drugs will be covered at no cost, and workers facing some of the most serious diagnoses in medicine are getting expanded access to specialist care.
The changes include no-cost coverage for certain GLP-1 medications for Type 2 diabetes. That covers Novo Nordisk’s (NVO) Ozempic and Eli Lilly’s (LLY) Mounjaro, both subject to prior authorization.
Walmart is also expanding specialist access through the Mayo Clinic and Cleveland Clinic, and adding up to 12 weeks of neonatal intensive care unit leave.
The announcement comes ahead of open enrollment. Walmart said the changes are the product of years of planning and testing.
At a U.S. workforce of 1.6 million employees, the company’s calculation is straightforward: reducing turnover by even a few percentage points produces savings in recruiting and onboarding that are difficult to generate any other way.
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What Walmart will cover at no cost starting in 2027
The no-cost prescription list covers more than 250 drugs, including certain insulins and inhalers alongside the GLP-1 diabetes medications.
For employees with Type 2 diabetes, Ozempic and Mounjaro will be available without a copay after prior authorization. Walmart built in that requirement to manage the volume and cost of claims for drugs that have become two of the most prescribed in the country.
In 2026, the specialist care benefit covers cancer treatment and second opinions at the Mayo Clinic and Cleveland Clinic. In 2027, that benefit expands to include rare conditions. Workers on most Walmart plans will be able to use it for ALS, multiple sclerosis and Parkinson’s disease, all of which require specialized care that most regional hospital systems cannot provide.
On the parental side, Walmart is adding up to 12 weeks of paid leave for parents whose newborns require time in a neonatal intensive care unit. That leave can be stacked on top of existing parental and maternity leave.
For families navigating a NICU stay, the added time provides more flexibility during one of the most difficult periods a household can face.
The cost of the company’s starting plan will rise by $1.50 per pay period, bringing it to $39.80. Walmart said that increase is smaller than last year’s.
The company described the broader expansion as something it was able to deliver “without slashing benefits or significantly raising premiums.”
The GLP-1 line Walmart drew and why it matters
Walmart is covering Ozempic and Mounjaro for employees with Type 2 diabetes, but not for weight loss, Fox Business reported.
That distinction separates the diabetes indication from the obesity indication. It is the line most large employers have settled on as drug costs for the GLP-1 class have climbed sharply.
Ozempic and Mounjaro carry FDA approval for Type 2 diabetes management. Wegovy and Zepbound are the versions of those same active compounds marketed for weight management. They are approved for obesity but cost employers significantly more per member when covered broadly.
Several large employers have pulled back on obesity drug coverage over the past two years as the math on widespread GLP-1 access has proven difficult to sustain.
Walmart’s solution was to cover the diabetes indication and exclude weight loss. Ozempic and Mounjaro require prior authorization, meaning employees need a confirmed Type 2 diabetes diagnosis to access the benefit.
That requirement is doing real work — without it, the no-cost drug benefit could attract a much wider pool of employees than Walmart’s cost projections account for.
Why the largest private employer in the U.S. is spending more on worker health
Walmart employs roughly 2.1 million associates worldwide, with about 1.6 million in the United States as of the end of fiscal 2026. At that scale, even modest improvements in employee retention translate into meaningful reductions in recruiting, onboarding and training costs.
The company said the benefits changes reflect years of planning and testing rather than a reaction to a single year of labor market conditions.
No-cost prescriptions and NICU leave carry the most weight for hourly workers. They face higher out-of-pocket healthcare costs than salaried employees, and benefits factor more directly into their decision to stay or leave.
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Walmart competes for that same labor pool against large retailers, logistics companies and healthcare systems, all of which have been raising their own benefits floors in recent years.
Walmart is also keeping premiums in check. The starting plan rises by $1.50 per pay period to $39.80, a smaller increase than last year.
The prior-authorization requirement on the GLP-1 drugs serves a similar function. It limits the no-cost benefit to employees who have gone through a formal diagnosis process. That gives the company some visibility into what the diabetes drug spend is likely to cost before claims come in.
What Walmart’s move signals for other large employers
Walmart’s decision to cover GLP-1 medications for diabetes while excluding weight-loss indications is likely to draw attention from other large employers working through the same calculation.
The retailer’s scale means its benefits decisions carry more weight than most. The structure Walmart landed on gives other HR teams a concrete framework heading into their own open enrollment seasons.
For Walmart shareholders, the near-term earnings picture is largely unchanged by this announcement.
The longer argument is about workforce stability. Retail and logistics turnover is expensive, and Walmart has consistently framed benefits investment as something that pays back through lower attrition across a workforce of more than 2 million people.
What Walmart’s 2027 package captures is a problem most large employers are actively navigating. Healthcare spending is up, GLP-1 prescriptions are climbing, and hourly workers have more leverage than they did five years ago.
Walmart’s response is to expand coverage where hourly workers feel the most financial pressure. It is holding premium increases to a minimum and using prior authorization to keep the drug spend from growing faster than the company can manage.