At a public meeting of the Manchester Board of School Committee, a consultant warned that coverage of GLP‑1 medications for weight loss has driven steep health‑plan costs, and committee members pressed the administration to notify affected employees of alternative purchase and payment options.
Tom DeLacy, principal consultant for Workplace Benefit Solutions Hub, told the committee that GLP‑1 drugs—originally developed for diabetes but now prescribed for weight loss—have sharply increased the district’s medical claims costs. “The cost for the Manchester School District increased tenfold from fiscal 23 to fiscal 25 and nearly fivefold in the last year alone,” DeLacy said. He said several large carriers and public plans have recently dropped or limited coverage because of the “prohibitive expense.”
The discussion matters because the district’s self‑insured plan would shoulder most of any continued coverage. DeLacy said his projection for this fiscal period was roughly $2.5 million in total cost, “$2,000,000 borne by the school district, a half a million borne by employees.” He also said about 168 unique plan members—roughly 5% of an estimated 3,500 covered members—were using GLP‑1 drugs. The consultant said that if usage continued at the same share, “next year the average family plan would go up by $540 per year just due to these drugs.”
Committee members pressed for clear, rapid outreach to staff who rely on the medications. “We let them down last time,” Committee member Juan said, asking the administration and benefits consultants to send letters that explain how employees can continue to obtain medications and what district support is available. Committee member Baines and others reiterated the request; the committee asked the administration to make the information easy to find and to explain mechanics such as how employees can use tax‑preferred accounts.
District staff and DeLacy described available alternatives and clarifications. DeLacy noted that many employees are on high‑deductible plans and the district contributes to employee health savings accounts (HSAs). During back‑and‑forth clarification, administrators said the district contributes to HSAs (the transcript discussion included figures of $3,000 for a family plan and $1,500 for a single plan, as discussed during the meeting) and that employees can use accumulated HSA funds to buy medications directly if insurance does not cover them. DeLacy pointed to recent direct‑to‑consumer pricing shifts, saying GoodRx and manufacturers have introduced lower‑cost programs (for example, a referenced $499 program for an injectable product when purchased direct), and he predicted market competition and new entrants could lower prices over time.
Committee members repeatedly framed the conversation as a difficult budgetary tradeoff rather than a judgment of clinical value. “We’re not saying people can’t have these drugs,” DeLacy said. “We’re just saying that they shouldn’t be covered on the formulary with the lion’s share being paid by the Manchester School District,” given current prices and projected costs.
Administration said some of the same information had already been shared with union leadership and that staff communications could be broadened to reach affected members. The district also said carriers routinely review formularies every six months and that new formulations—including an oral (pill) GLP‑1 anticipated by some manufacturers in 2026—could change the coverage outlook.
The committee did not take a separate, new formal vote on coverage at the meeting; members focused on ensuring clear, timely outreach. Several committee members asked the administration to send direct guidance to the roughly 168–169 affected employees, spelling out options (use of HSA funds, direct purchase programs, subscription‑style compounding pharmacies and third‑party weight‑management programs) and how to proceed if they wish to continue therapy.
The district said it will follow up with written communications and that the benefits team and union have already received a one‑page summary of options and costs.