Walmart Adds Free Prescriptions and Paid NICU Leave for 2027

Walmart will expand healthcare coverage for its U.S. workforce in 2027, introducing free prescriptions for more than 250 medications, specialist services for rare conditions and paid leave for parents whose newborns require intensive care. The retailer announced the changes on October 13, 2026, as it seeks to maintain affordable benefits for approximately 1.6 million U.S. associates.

According to Walmart's announcement, the expanded benefits will begin on January 1, 2027, for several healthcare programs, while dedicated paid neonatal intensive care unit (NICU) leave will become available earlier, on November 17, 2026. The changes include prescription coverage, specialized medical consultations and additional time off for eligible employees.

The new zero-dollar prescription tier will cover more than 250 generic, brand-name and specialty medications, including certain insulin products and inhalers. Walmart also plans to provide Ozempic and Mounjaro at no cost to employees with Type 2 diabetes, subject to a new prior authorization requirement, according to CNBC's October 13 report.

However, Walmart will not extend the free coverage to GLP-1 medications prescribed for weight loss. The company continues to distinguish between treatment for Type 2 diabetes and weight management as employers face increasing healthcare expenses.

Walmart said it is seeking to improve benefits without substantially increasing employees' insurance costs. The starting premium for its entry-level medical plan will rise by $1.50 per pay period to $39.80, an increase the company described to CNBC as smaller than the previous year's adjustment.

In its statement to CNBC, Walmart described the approach as the result of long-term planning and efforts to improve employee benefits while limiting premium increases.

"The steps we're taking are based on years of planning and trying new things, which is allowing us to make meaningful improvements for associates without slashing benefits or significantly raising premiums," Walmart said in its statement to CNBC.

The retailer is also expanding access to specialized medical care through its Centers of Excellence program. According to Walmart's corporate announcement, eligible associates and dependents enrolled in most medical plans will receive no-cost access to specialists for multiple sclerosis, Parkinson's disease and amyotrophic lateral sclerosis (ALS).

The Rare Conditions Center of Excellence will connect eligible patients who are undergoing evaluation or have received a diagnosis with specialists for in-person assessments and treatment reviews. Walmart said travel expenses will also be covered for patients and one adult caregiver, following the approach used in its existing Centers of Excellence programs.

The expanded services build on Walmart's existing arrangements with Mayo Clinic and Cleveland Clinic, which already provide specialized cancer care and second opinions for eligible employees. A letter from Donna Morris, Walmart's executive vice president and chief people officer, outlined the broader benefits expansion.

Another major change is the introduction of dedicated paid leave for eligible employees whose newborns require inpatient care in a NICU. Beginning November 17, 2026, the benefit will provide up to 12 weeks of paid leave for qualifying children admitted during the first 28 days after birth and actively receiving inpatient treatment.

Walmart said the NICU leave can be combined with existing maternity and parental leave benefits. Frontline associates could receive up to 28 weeks of paid leave when the birth involves a NICU admission, depending on eligibility and the applicable leave benefits.

The changes follow years of efforts by Walmart to strengthen employee compensation and benefits. The company employed approximately 2.1 million associates worldwide at the end of fiscal year 2026, including about 1.6 million in the United States, according to figures cited by CNBC.

Walmart's annual benefits enrollment period was scheduled to close on November 6, 2026. The company said eligible full-time and part-time associates can access medical coverage through plans with starting premiums of $39.80 per biweekly pay period.