Illinois weight-loss drug plan could cost over $200M

Grocers are already taking a revenue hit from the proliferation of weight-loss wonder drugs like Ozempic, Wegovy, and Mounjaro, but that trend is likely to have a greater effect in Springfield, Ill., due to a proposal to include the GLP-1 drugs in the state’s health insurance program. 

The drugs were originally developed to help manage diabetes, but their ability to curb hunger and reduce binge-eating has made them a popular drug for weight loss. 

The Chicago Sun-Times and WBEZ public radio reported on Tuesday that Illinois Gov. J.B. Pritzker included the coverage in his proposed budget bill, which includes GLP-1 drugs in the state health plan for those seeking to lose weight at an estimated cost of $210 million.

That would cover lawmakers, judges, and other state workers. 

Meanwhile, a handful of other states are pulling back on coverage of the drug. Beginning in January, North Carolina cut GLP-1 drugs from the state plan.

North Carolina State Treasurer Dale Folwell told WFMY News in late January that continuing coverage of the drug for weight loss would end up doubling premiums for those on the state health plan. 

North Carolina is still allowing coverage for diabetic state workers, but not for those only seeking to lose weight. “When we are hit with the potential of nearly $170 million worth of bills for one drug, that’s why the board took the action that it did,” Folwell told WFMY News.

Similarly, ballooning costs for state workers in Connecticut is getting the attention of the state comptroller, which is projecting a $34 million to $40 million price tag for the drugs in 2024, roughly 10% of the $390 million the state spends annually on prescription drugs, according to a story from Connecticut Inside Investigator.  

The story notes that GLP-1 costs have increased nearly 50% every year since 2020, when the state paid just $7.7 million. 

Meanwhile, the state of Delaware is going in the same direction as Illinois, proposing an FY 2025 budget that includes $93 million for GLP-1 drugs for state workers, according to a story in Delaware Live. 

Comparatively, Delaware’s 2024 fiscal year budget included a mere $2 million to cover the weight-loss drugs, according to the report. 

In Illinois, officials have argued that covering the drug for weight loss is a preventive approach to healthcare and will prevent diabetes and other health concerns associated with obesity. 

Pritzker spokesperson Jordan Abudayyeh told the Sun-Times and WBEZ that the plan to include coverage was aimed at achieving “equity” among the nine health plans that cover state workers, noting that only seven currently cover the drug. 

She said the $210 million price tag could end up costing less, but those opposed to the budget item believe they could end up costing taxpayers more.