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Biden wanted Medicaid to pay for weight-loss drugs. Trump just said it doesn’t have to

  • The Trump administration reversed a Biden-era rule in April 2025 that would have required Medicaid to cover GLP-1 weight-loss drugs nationwide, allowing states to decide whether to pay for these medications.
  • The change follows concerns from state Medicaid directors about the fiscal impact of mandatory coverage amid rising demand and high costs of GLP-1s like Ozempic and Wegovy, which can exceed $1,000 per month.
  • In April 2025, Aon plc published a study utilizing extensive medical and prescription records covering more than 50 million individuals with commercial insurance. The findings demonstrated that a comprehensive obesity management approach incorporating GLP-1 medications and supportive programs can slow medical cost growth and significantly lower the incidence of major cardiovascular events over a two-year period.
  • Aon's analysis observed a 44% decrease in hospitalizations from major adverse cardiovascular events and up to 13% savings for adherent GLP-1 users, highlighting potential cost reduction despite initial treatment expenses.
  • This development suggests that while upfront costs pose challenges, state Medicaid programs retaining coverage choice could balance fiscal concerns with long-term health and economic benefits from GLP-1 medications.
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GLP-1s can help employers lower medical costs in 2 years, new study finds

As broader approval for GLP-1 weight loss drugs spurs higher demand, it's also causing employer drug spending to spike.

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stateline.org broke the news in on Monday, April 28, 2025.
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