Walmart to expand health benefits for employees, including $0 prescriptions, rare disease care

Walmart pharmacy associate helps customer
The retail giant said it is adding three new enhancements to its benefits package to provide affordable and accessible quality care options. (Walmart)

Walmart is expanding benefits for its 1.6 million U.S. employees with lower-cost prescriptions, specialized care for rare neurological conditions and paid leave for parents of babies in the NICU.

The retail giant said it is adding three new enhancements to its benefits package, effective January 1, 2027. Walmart announced the new benefits in a letter to its 1.6 million U.S. associates, the company said.

The "Zero Dollar prescription tier" will include more than 250 generic, brand-name and specialty medications. 

Walmart is also expanding its Centers of Excellence (COE) to include a Rare Conditions COE, which it says will provide employees and dependents with no-cost access to specialists for a range of conditions, including multiple sclerosis and amyotrophic lateral sclerosis (ALS). 

The Rare Conditions COE is in collaboration with health systems like Mayo Clinic and Cleveland Clinic. Those enrolled in Walmart health plans can connect with specialists in-person at no cost, with travel covered for patients and adult caregivers as well.

The company is also providing dedicated paid neonatal intensive care unit (NICU) leave beginning Nov. 17. The policy will provide a maximum of 12 weeks of paid NICU leave for eligible employees with children admitted to NICUs during the first 28 days of birth, according to the announcement. 

The benefit can be combined with other time off and leave benefits, including maternal and parental paid leave. Up to 28 weeks of paid leave can be covered in cases of NICU admission, executives say.

“We are excited to share upcoming changes to our benefits during this Annual Enrollment season,” said Donna Morris, Walmart EVP and chief people officer, in a statement. “We're adding even more ways for associates and their families to live better through comprehensive and affordable healthcare and benefits.” 

In a letter (PDF) to employees, Morris said annual enrollment is currently underway through Nov. 6.

Walmart's move to expand health benefits comes as many employers are looking to modify plan designs as annual employer health insurance costs continue to climb. Employers' healthcare costs are projected to spike again in 2027, with Marsh (formerly Mercer) estimating an 8.2% increase—the highest since 2003. To mitigate higher costs, 59% of employers in Marsh’s survey plan to make cost-cutting changes to health benefits next year, including plan design changes.

The retail giant also announced in September a six-month pilot program that places pharmacists in a new “Health Ambassador” role at five rural stores to help customers navigate health and wellness resources.

The Health Ambassador role will be piloted at locations serving rural and underserved communities across the U.S., including in Lexington, Tenn.; Caro, Mich.; Franklin, Va.; Fort Scott, Kan.; and Searcy, Ark. The pilot will initially focus on three healthcare areas: diabetes, weight management and maternal health.