GLP-1 Obesity Drugs: Cost-Effective Solutions Through Limited Coverage and Dietary Counseling

Blue Cross Blue Shield of Michigan is one such insurer. Beginning in January 2025, around 10,000 people in the state will lose coverage. Companies aren’t entirely rejecting the drug. Blue Cross Blue Shield emphasized that the decision will not impact people prescribed the medications, known as GLP-1 agonists, for Type 2 diabetes or cardiovascular risk factors will not be affected. Is this the right call?

The NY Times has estimated the cost and savings to state public insurance programs, health insurance exchange subsidies, and U.S. taxpayers from making the new weight loss class of drugs more broadly available. Under reasonable assumptions and at current prices, making this class of medications available to all obese Americans could eventually cost over $1 trillion per year. That exceeds the savings to the government from reduced diabetes incidence and other health care costs from excess weight by $800 billion annually.

Recently, GLP-1 receptor agonists, initially developed for diabetes management, have gained significant attention for their efficacy in promoting weight loss. These drugs, including semaglutide and liraglutide, are now being prescribed off-label for obesity management, with some achieving remarkable results. However, as these medications become…