The escalating costs of weight-loss medications, particularly GLP-1 drugs like Ozempic and Wegovy, are prompting several states to reconsider their coverage policies for state employees.
In Colorado, expenditures on these medications have more than quadrupled from 2023 to 2024, with usage doubling every six months. This surge has led the state health plan to propose discontinuing coverage, citing financial unsustainability. However, this proposal has met resistance from state employees and their union, Colorado WINS. Executive Director Hilary Glasgow emphasized that removing coverage could lead to increased spending on obesity-related diseases and result in a less healthy workforce.
Similar challenges are evident in other states. North Carolina and West Virginia have already eliminated coverage for these drugs due to cost concerns, leaving employees to bear monthly expenses of up to $1,500 for the treatments. The widespread adoption of GLP-1 medications is evident, with more than 1 in 10 Americans reporting usage, according to a May 2024 KFF Health Tracking poll. This trend is intensifying budgetary pressures, especially as pandemic-era federal funds diminish. Additionally, potential tariffs on Denmark, where these drugs are manufactured, could further escalate costs.
States now face a difficult decision: continue coverage and strain their budgets or eliminate a benefit that many employees depend on.