State Health Plan may end coverage for weight loss drugs
The State Health Plan Board of Trustees is considering ending coverage of drugs like Wegovy and Saxenda for the purpose of weight loss, and the state treasurer is calling on the drug maker to price the drugs fairly.
Treasurer Dale Folwell said it “defies logic” that Novo Nordisk can sell the exact same product in the Netherlands for $296 per month and in the United States for more than $800 per month.
He added that the pricing should be investigated by the Federal Trade Commission for unfair and deceptive business practices.
Because of financial pressures, the board is considering removing coverage for the popular drugs. Currently, the Plan faces a $4.2 billion budget gap over the next five years, and the newly enacted budget from the state legislature funded the Plan by $240 million less than was requested over the next two years.
The weight-loss medications are currently used by more than 23,000 members on the Plan with a net cost of more than $800 per member per month.