Drug costs weigh on state budgets

High demand for weight loss drugs such as Wegovy and Ozempic is placing financial stress on some states that cover the medications for their employees.  

States such as West Virginia, Colorado and North Carolina have either considered dropping coverage or have already done so due to high costs and budget tightening. Employee groups have pointed out that ending the coverage likely will cost states in other ways, including a less healthy and productive workforce and greater outlays to treat obesity-related disease. 

It was reported earlier this year that Ozempic and Wegovy will be included in the next round of Medicare drug price negotiations, with the new pricing taking effect in two years. In the meantime, manufacturers Novo Nordisk and Eli Lilly & Co. have announced more immediate price reductions for Wegovy and Zepbound, respectively, and the FDA formally stated that the semaglutide shortage has ended.