Burlington-based University of Vermont Health will suspend insurance coverage of GLP-1 medications prescribed for weight loss for employees and their families, effective Sept. 1, according to a statement shared with Becker’s.
The health system, which employs about 14,000 people across Vermont and upstate New York, said use of the medications has increased significantly over the past two years, making them “one of the fastest-growing drivers of health plan spending.”
“This was a difficult decision,” the health system said in the statement. “We know that many of our employees and their families have experienced meaningful health improvements while using GLP-1 medications for weight loss, and that this change may be disappointing and challenging for those affected.”
The system said coverage for GLP-1 medications used to treat Type 2 diabetes will continue.
UVM Health said it determined that continuing to cover GLP-1 medications for weight loss would place increasing pressure on employee health plan premiums and its long-term sustainability.
“Given the significant financial challenges facing the organization, we must make hard choices to ensure continuity of benefits for the more than 10,000 employees and their families who receive insurance through us,” the statement said.
The decision comes as UVM Health works to close a projected financial gap of more than $300 million over the next three years. In June, the health system eliminated 76 positions and restructured 66 others as part of broader cost-cutting efforts. It has also reduced locum and travel staffing, paused discretionary spending and implemented other measures to improve financial performance.
UVM Health said the change follows a yearslong clinical and financial review that included recommendations from an internal panel of experts. The system also noted that employers and insurers nationwide have increasingly scaled back coverage of GLP-1 medications for weight loss because of their high cost and uncertainty around long-term savings. It also cited 2026 surveys from Mercer and PSG showing nearly half of employers do not cover the medications for weight loss and little evidence of long-term healthcare savings.
The health system said employees will continue to have access to other weight management resources, including nutrition counseling, wellness and behavioral health programs, discounted gym memberships and coverage for certain non-GLP-1 weight loss medications.
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