States Grapple with Costly GLP-1 Drugs Amid Budget Woes

U.S. states are struggling to manage rising costs of GLP-1 drugs like Wegovy and Ozempic, which are popular for weight loss. This financial strain is prompting some states to consider limiting Medicaid coverage. With spending projected to soar, policymakers examine cost-effective measures to provide access while managing budgets.

Amid escalating costs, states across the U.S. are finding it increasingly difficult to afford GLP-1 diabetes drugs, which have gained popularity for their weight-loss benefits. The financial burden has caught many states by surprise, leading them to explore policy changes to restrict Medicaid coverage for these medications.

Pennsylvania faces a particularly challenging situation, with Medicaid coverage costs projected to hit USD 1.3 billion by 2025. The state's policymakers are considering imposing stricter requirements for Medicaid patients seeking these drugs, such as body-mass index thresholds and prerequisites of other treatments.

This issue is playing out against a backdrop of broader fiscal challenges, with some states contemplating full cessation of coverage, and debates continuing among state legislatures about potential bills to mandate coverage under Medicaid. These discussions highlight the balance between cost management and patient access to these potentially life-altering treatments.

(With inputs from agencies.)