Provided is a microcapsule for increasing the survival and/or function of a cell, such as an islet cell, microcapsule can include an outer shell comprising a first polymer an interior core comprising: at least one live cell a second polymer and at least one microsphere comprising a third polymer and a compound capable of improving survival of the at least one cell. The improved survival and/or function of the at least one live cell in the microcapsule is compared to a live cell in a microcapsule in the absence of the compound capable of improving survival of the at least one cell. The first and second polymer may include alginate and the third polymer (used for the microsphere) may comprise PLGA. The compound may include a GLP-1 receptor agonist. Also provided are methods for producing such microcapsules insulin delivery systems using the microcapsules, and methods to treat disease, such as diabetes, using the microcapsules.