"Taxpayer Drain: The Battle for Access to Obesity and Diabetes Drugs"

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Source: Business Insider
"Taxpayer Drain: The Battle for Access to Obesity and Diabetes Drugs"
Photo: Business Insider
TL;DR Summary

The demand for weight-loss drugs like Ozempic and Wegovy is causing concern for taxpayer-funded health plans as costs surge, with Medicaid spending $7.9 billion on these drugs in 2022. Some state and local governments are sounding the alarm about the impact on their health plans, prompting measures such as moratoriums on new users and reevaluation of coverage. The rising costs are leading to potential premium increases and budget strains, with some employers and governments cutting coverage. While manufacturers argue that the drugs will save money in the long run, states are working to bring costs down as demand continues to grow.

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