Maryland Medicaid spent $68M in a year on obesity and diabetes drugs like Ozempic, Wegovy

By Lorraine Mirabella

Maryland Medicaid spent $68M in a year on obesity and diabetes drugs like Ozempic, Wegovy

Maryland's Medicaid program now offers partial coverage of popular obesity drugs, with the state spending more than $68 million over 12 months on medications for both obesity and Type 2 diabetes, the 7th most in the nation.

That's according to an analysis by Real Chemistry, a healthcare marketing firm that looked at spending and variations in the way state Medicaid programs cover GLP-1s, or glucagon-like peptide-1 agonists, approved for obesity.

All state Medicaid programs cover at least one Type 2 diabetes-indicated GLP-1 but coverage varies for obesity-indicated options. Medicare, federal health insurance for those 65 and older, currently limits its coverage to patients with Type 2 diabetes or certain heart conditions.

The Maryland program's spending on both obesity and Type 2 diabetes drugs grew 86% year-over-year, Real Chemistry said.

The obesity treatment has become popular but can cost as much as $1,000 per month without insurance coverage.

The drugs were developed originally for Type 2 diabetes but have proven highly effective for obesity, a widely recognized chronic disease affecting more than 40% of U.S. adults.

The Food and Drug Administration has approved three GLP-1s specifically for obesity, including Wegovy, Zepbound and Saxenda. Other common GLP-1s, such as Ozempic, Mounjaro or Rybelsus, are only FDA-approved for Type 2 diabetes.

The Biden administration has proposed expanding obesity drug coverage under Medicare and Medicaid, a program for those with limited incomes. The proposal is expected to draw opposition from the drug industry and President-elect Donald Trump's administration.

Medicaid in Maryland covers just one obesity-indicated drug, Wegovy. The state program covers the most common Type 2 diabetes medications.

Maryland is one of 36 states that cover at least one FDA-approved drug for obesity.

Medicaid spending on GLP-1s has grown exponentially over the past five years because of an increase in usage and expanded coverage in many states, Real Chemistry said. Spending on these drugs for obesity reached $3.5 billion over the past 12 months.

Real Chemistry said it collected data from a proprietary market intelligence platform that includes medical, hospital, and pharmacy claims covering more than 300 million U.S. patients over 10 years. Medicaid enrollment statistics cam from the Centers for Medicare & Medicaid Services.

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