Michigan’s largest insurer to drop weight-loss drug coverage

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Weight-loss drugs from Novo Nordisk A/S and Indianapolis-based Eli Lilly and Co. will lose coverage under many plans run by Michigan’s largest health insurer as companies grapple with whether the drugs are worth the cost.

Blue Cross Blue Shield of Michigan will drop coverage GLP-1 obesity drugs in fully insured large group commercial plans starting in January citing consideration of their “efficacy, safety and access, and cost,” a spokesperson said. The insurer didn’t immediately respond to questions about how many patients will be affected or what the potential safety concerns were.

GLP-1s such as Novo’s Wegovy and Lilly’s Zepbound are exploding in popularity. But with list prices of $1,000 a month or more for a single user, insurers are balking at the prices and trying to limit how widely they’re used. The Medicare health program for the elderly doesn’t cover the drugs for obesity at all, although it covers similar drugs for diabetes.

Some states’ Medicaid plans that cover low-income residents pay for GLP-1 drugs, but even that has been contentious. North Carolina’s health plan for state employees dropped coverage of the drugs for weight loss earlier this year after projecting a $1.5 billion loss by the end of the decade.

Lilly and Novo didn’t immediately respond to requests for comment.

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2 thoughts on “Michigan’s largest insurer to drop weight-loss drug coverage

  1. Something is up on this. These insurers are nuts not to cover these drugs. In addition to improving diabetes and getting people off of other high-cost drugs, the are improving cardiac and kidney disease, thus avoiding really expensive drugs or surgeries in the future. This doesn’t make sense unless there is something else going on. As the saying goes, follow the money…………….

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