States increasingly struggling to cover the rising cost of popular GLP-1 drugs like Wegovy, Ozempic and Zepbound are searching for ways to get out from under the budgetary squeeze that took them by surprise.
One solution some policymakers may try is restricting the number of people on Medicaid who can use the pricey diabetes drugs for weight-loss purposes.
Pennsylvania’s Medicaid coverage of the drugs is expected to cost $1.3 billion in 2025 — up from a fraction of that several years ago — and is contributing to projections of a multibillion-dollar budget deficit. The state is thinking about requiring Medicaid patients who want to use GLP-1s for weight loss to meet a certain number on the body-mass index or try diet and exercise programs or less expensive medications first.
‘‘It is a medication that’s gotten a lot of hype and a lot of press, and has become very popular in its use and it is wildly expensive,‘’ Dr. Val Arkoosh, Pennsylvania’s human services secretary, told a state House hearing in March.
At least 14 states already cover the cost of GLP-1 medications for obesity treatment for patients on Medicaid, the federal health care program for people with low incomes. Democrats and Republicans in at least a half-dozen other states floated bills this year to require the same coverage, according to an Associated Press analysis using the bill-tracking software Plural.
Some bills have stalled while others remain alive, including a proposal in Arkansas requiring GLP-1s to be covered under Medicaid when prescribed specifically for weight loss. Iowa lawmakers are thinking about ordering a cost-benefit analysis before making the commitment. Already, West Virginia and North Carolina ended programs in 2024 that provided coverage for state employees, citing cost concerns.
‘‘It is very expensive,‘’ said Jeffrey Beckham, the state budget director in Connecticut, where Medicaid coverage of the drugs for weight loss may be scrapped entirely. ‘’Other states are coming to that conclusion, as well as some private carriers.‘’
Overall Medicaid spending on GLP-1 drugs — before partial rebates from drug manufacturers — jumped from $577.3 million in 2019 to $3.9 billion in 2023, according to a November report from KFF, a nonprofit that researches health care issues. The number of prescriptions for the drugs increased by more than 400% during that same time period. The average annual cost per patient for a GLP-1 drug is $12,000, according to a Peterson-KFF tracker.