Louisiana state insurance plans spend $200 million a year on GLP

KEY TAKEAWAYS:

State spends $200M yearly on GLP-1 drugs

Coverage for obesity treatment with Ozempic not allowed

Lawmakers debate using cheaper compounded versions despite FDA concerns

Contracts approved with new pharmacy benefit managers for transparency

Expenses have surged for Louisiana’s public worker health insurance plans as more people are prescribed GLP-1 drugs, known by brand names such as Ozempic and Mounjaro. The diabetes drugs are now commonly thought of as weight-loss medications, though that use isn’t covered by Louisiana state health benefits.

Even with GLP-1 coverage prohibited for obesity treatment, the state Office of Group Benefits spends $200 million per year on the drugs and is “adding people everyday,” CEO Heath Williams said Thursday at legislative finance commi