Members of the Manchester Board Mayor & Aldermen Committee on Human Resources and Insurance heard an informational presentation on GLP‑1 weight‑loss medications and how they affect the city’s self‑funded health plan. Anthem and consultant USI described an Anthem coding error that allowed coverage for weight‑loss GLP‑1s for 44 members and outlined cost estimates and alternatives.
The presentation, given by Anthem executive Milan Rajic and USI consultant Bert Dury, explained that the city’s plan has historically covered GLP‑1 drugs for Type‑2 diabetes but not for weight‑loss. Rajic summarized Anthem’s discovery: “this was our mistake, and we owned the mistake. We paid the city back the monies, and we also let those members continue to get coverage for the full 12 months on their plans.” He said Anthem reimbursed the city roughly $358,000 and offered to host webinars and one‑on‑one sessions to help affected employees explore alternatives.
USI estimated that if the city chose to cover GLP‑1 medications for weight loss across the entire employee population, the annual cost could be about $1.4 million to $1.7 million. Bert Dury said the estimate reflects uncertainty about future uptake and noted that only 44 members used the benefit while it was available, producing the lower short‑term cost. USI also described manufacturer direct programs with lower participant prices (examples cited: $350–$600 per month) and suggested program designs that pair medication with behavioral supports rather than open‑ended pharmacy benefit coverage.
Alderman O'Neil, a city council member and committee participant, framed the issue as an employee health question. He recounted personal and family medical experience and urged the committee to prioritize health outcomes: “weight loss is not a behavioral issue. It’s a medical condition that needs to be treated.” Other committee members pressed for cost clarity and noted union contract implications; the city solicitor said expanding plan coverage for this use likely would require renegotiation with unions because the current benefit design did not include weight‑loss coverage.
Presenters compared Manchester’s situation to other local employers. One speaker representing the school district reported rapid utilization growth there over several years, citing an increase from 20 users in FY23 (cost $110,000) to 168 users in FY25 (cost $1.2 million). USI and Anthem officials warned that utilization can rise quickly when a benefit is actively marketed or becomes available to more members.
No formal action was taken; the presentation was informational. Anthem offered educational sessions and one‑on‑one support for the 44 affected members. The committee requested continued updates from Anthem and USI and was told staff would report back as industry developments occur.