The city of Boston will implement utilization management for its employees, according to a March 26 news release from Mayor Michelle Wu’s office.
The Public Employee Committee voted to pass the agreement with unanimous consent. The city expects to save about $10.6 million.
City revenue is expected to grow between 1.5% and 2.5%, while healthcare costs spike significantly. The news release attributed the steeper expenses in part to mounting interest in GLP-1s.
The change affects BCBS Massachusetts, a carrier available to city workers. About a year ago, BCBS Massachusetts dropped weight-loss drug coverage as part of its standard benefits, while still covering GLP-1s for diabetes. Executives pointed to GLP-1s as the biggest driver behind a $400 million operating loss in 2024. Large employers could choose whether they would continue weight-loss coverage.
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