News Summary
Louisiana’s public health insurance plans are experiencing sharp cost increases due to the rising use of GLP-1 medications like Ozempic and Mounjaro. These drugs, often prescribed for weight loss, are not covered for obesity treatment, leading to an estimated $200 million annual burden. With costs per patient skyrocketing from $20 to $1,200, lawmakers are discussing the affordability and accessibility of GLP-1 prescriptions amid frustration over pharmaceutical pricing practices.
New Orleans, Louisiana – Louisiana’s public worker health insurance plans are facing a substantial increase in costs linked to the rising use of GLP-1 drugs, such as Ozempic and Mounjaro. These medications, while often utilized for weight loss, are not covered under state health benefits when prescribed for obesity. This lack of coverage is leading to an estimated $200 million annual expense associated with these medications, according to Heath Williams, the CEO of the state Office of Group Benefits.
The demand for GLP-1 drugs has surged dramatically over the past six years. Previously, many patients were prescribed Metformin, a more affordable medication for Type 2 diabetes that cost the state about $2 million each year. As the state transitions individuals from Metformin to GLP-1 drugs, the monthly costs skyrocketed from approximately $20 to upwards of $1,200 per patient. This transition is impacting around 212,000 individuals enrolled in state health insurance, which includes state employees, public school teachers, local government workers, and retirees.
The state Office of Group Benefits has a total annual budget of roughly $2 billion, funded partially by member premium payments. In an effort to manage rising costs and improve transparency regarding GLP-1 prescriptions, the office has recently approved contracts with new pharmacy benefit managers, Liviniti and SilverScript.
Earlier this year, a budget provision that would have enabled the office to cover the cost of GLP-1 prescriptions specifically for obesity treatment was passed. However, this provision faced a veto from Governor Jeff Landry. The governor expressed concerns about the affordability of such coverage, warning that the high cost of GLP-1 drugs—up to $1,000 per month for each individual—could create long-term expectations of dependency that the state may not be able to afford.
During a recent meeting, Louisiana legislators discussed the rising prices of GLP-1 drugs, attributing these costs to pharmaceutical companies. Notably, they pointed out that similar medications are available at significantly lower prices in other countries. In an attempt to find more affordable solutions, Senator Heather Cloud suggested examining compounded versions of GLP-1 drugs, which could potentially lower prices. Yet, these compounded alternatives have not received approval from the FDA. Additionally, the FDA has issued warnings regarding the safety and effectiveness of compounded GLP-1 drugs, raising further concerns about their viability.
Cloud acknowledged the challenges in navigating pharmaceutical pricing but emphasized that determining a way to provide coverage for compounded drugs could be a prospective solution moving forward. The high costs associated with GLP-1 drugs have sparked a broader discussion among state lawmakers, indicating a rising frustration with current pharmaceutical practices.
As the state continues to grapple with health insurance expenses, especially concerning GLP-1 medications, there is a pressing need for policy solutions that balance patient access with budgetary constraints. The increasing utilization of these medications presents a significant challenge for Louisiana, prompting ongoing dialogue among legislators about sustainable health care practices.
Deeper Dive: News & Info About This Topic
- New Orleans City Business: Louisiana Ozempic Costs Public Worker Insurance
- Wikipedia: GLP-1_receptor_agonist
- Louisiana Illuminator: Louisiana Partially Breaks from CVS Health
- Google Search: GLP-1 drugs
- NOLA.com: Letters GLP1 Terzepatide
- Google Scholar: Ozempic COSTS
- Louisiana Illuminator: Landry Vetoes Weight Loss Drug Insurance Coverage
- Encyclopedia Britannica: Ozempic
- Axios: GLP-1 Anti-Obesity Drug Use
- Google News: Louisiana pharmaceutical costs
Author: STAFF HERE NEWORLEANS WRITER
NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
