North Carolina is locked in a battle with drugmakers Novo Nordisk and Eli Lilly over the sky-high costs of popular weight loss drugs. The state’s health insurance plan for roughly 700,000 teachers, state employees, and retirees has been financially strained by the soaring costs of Wegovy and Saxenda from Novo Nordisk, and Zepbound from Eli Lilly. Last year, North Carolina spent more than $100 million on weight loss drugs for nearly 25,000 state employees, accounting for about 10% of its total prescription drug spending and surpassing its expenditures on all cancer treatments combined. The projected cost of these drugs over the next five years is an additional $600 million, prompting the state’s health plan board of trustees to vote in January to stop covering them. In a last-ditch effort to reduce spending, North Carolina Treasurer Dale Folwell has initiated drug pricing negotiations with Novo Nordisk and Eli Lilly, assisted by the state’s pharmacy benefit manager, CVS Caremark. The negotiations are ongoing, but Folwell has set a target price of $300 per month, which is roughly what is paid in Denmark, where Novo Nordisk is headquartered. Folwell has criticized the drugmakers for excessive pricing, stating, “The cost of this drug can be anywhere from $10 to $70 to manufacture it, and it’s being sold for retail for well over $1,000.” Novo Nordisk and Eli Lilly have expressed commitment to finding solutions but have rejected certain options. Folwell is also proposing raising the minimum body mass index (BMI) threshold to qualify for the drugs, reserving them for individuals with severe obesity. Additionally, he wants to limit the duration of treatment if the drugs prove ineffective. The ongoing negotiations have left North Carolina state employees who lost coverage in April concerned about their health and access to medication. Patients have reported experiencing weight gain and anxiety after discontinuing the drugs. While negotiations continue, the financial burden and impact on patients’ well-being remain pressing issues for North Carolina.
North Carolina Battles Drugmakers Over Sky-High Weight Loss Drug Costs
