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Group Insurance Commission warns GLP‑1 spending risks a $77M shortfall; staff to return with options in October
Summary
At its September meeting, the Group Insurance Commission said rising use of GLP‑1 weight‑loss drugs was a major driver of FY25 deficits and a projected FY26 budget gap of about $77 million. Commissioners asked staff for specific savings plans and said any midyear coverage change would require legislative authority; staff will return in October.
Valerie Sullivan, chair of the Group Insurance Commission, on Tuesday presided over a wide-ranging discussion of prescription drug spending after staff presented data showing a steep rise in GLP‑1 use and significant budget pressure.
Matt, the commission’s executive director, told members that maintaining current coverage “is really no longer viable” given the drugs’ cost and the number of people who may become eligible. He said the commission’s FY26 budget baseline is short by about $77,000,000 and that the governor has filed legislative language that — if enacted — would allow the commission to eliminate coverage for GLP‑1 drugs for weight loss midyear. “We don't yet have that authority from the legislature,” Matt said, adding that the commission would need to decide by its October meeting if authority is granted.
Catherine Moore, interim budget director, reviewed FY25 results…
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