Five updates about weight loss drugs and BCBS:
BCBS Michigan said it will no longer cover GLP-1 drugs to treat obesity beginning in January. The change will affect nearly 10,000 members in fully insured, large group commercial plans.
The company cited concerns over safety, effectiveness and cost as the reasons for the decision.
BCBS Association published research in May that found 58% of patients taking weight loss drugs discontinue use of their medication before reaching a clinically meaningful health benefit.
Highmark Health, which operates BCBS affiliates in four states, noted in its first quarter financial report that its health plans continue to face “rising pharmaceutical costs, particularly around GLP-1 drugs.” The company reported a net income of $194 million in Q1.
BCBS Rhode Island reported a $26 million operating loss in 2023, which it said reflected a “substantial surge in medical and pharmacy claims.” The payer said pharmaceutical claims grew by $75 million, which was led by a 1,300% increase in the commercial market’s use of some GLP-1s.
Independence Blue Cross reported revenues of $31.1 billion in 2023, up 13.6% from 2022. Revenue gains were offset by rising utilization of high-cost drugs, including GLP-1s for diabetes and weight loss, the company said.
