Crackdown on Ozempic, Wegovy Hits Thousands In Colorado

Colorado is planning to cut insurance coverage of prescription weight loss drugs for its nearly 40,000 state employees in an attempt to save millions of dollars at a time when the state faces a significant budget shortfall. A Colorado Department of Personnel & Administration spokesperson told Newsweek that it would continue to cover the drugs' expenses for employees with certain conditions but that "difficult decisions need to be made" due to a "tough budget year."

Why It Matters

The use of injectable weight loss medications like Wegovy and Ozempic, both produced by Danish manufacturer Novo Nordisk, has grown massively in recent years, since the two drugs were approved for diabetes treatment. According to a May 2024 poll by independent health news website KFF, 12 percent of U.S. adults had tried weight loss drugs, including 6 percent who were currently using them. Such medications have proven greatly effective in controlling patients' blood sugar levels if they have Type 2 diabetes and helping them lose weight, and evidence has emerged of further positive effects linked to the drugs' use. The use of drugs like Wegovy and Ozempic could make Americans healthier and save millions of dollars in medical treatments, according to experts.

What To Know

Colorado state employees have had Glucagon-like peptide-1 medications—better known as GLP-1 and which include Wegovy and Ozempic—covered by their health insurance plan since September 2022. Under the change planned by Colorado authorities, the state would continue covering the expenses for GLP-1s for employees with Type 2 diabetes, cardiovascular disease and obstructive sleep apnea but not for those using the drugs to lose weight. The move could help save nearly $17 million annually, according to officials.

"Under this proposal, the state would continue to cover GLP-1s for the treatment of Type 2 diabetes, Cardiovascular Disease (CVD w/ History), and Obstructive Sleep Apnea," Adrian Schulte, communications director at the Colorado Department of Personnel & Administration, told Newsweek. "DPA also offers state employees wellness programs to continue support of employees seeking weight loss solutions. Examples include nutritional counseling, personal training, and additional incentives and strategies to support developing lifelong skills so participants can reach and sustain healthy weight management." The reduction in coverage will come into effect as of July 1. After this date, Colorado state employees trying to combat obesity or reduce the risk of diabetes will have to pay for the weight-loss medications out of their own pockets—and their price tag isn't cheap. Without insurance, Wegovy costs approximately $1,349.02 per month, according to telehealth company Ro. Ozempic's retail price is $968.52 for a one-month supply, according to manufacturer Novo Nordisk.

Why Does Colorado Need To Cut Costs?

Colorado is struggling with a significant budget shortfall this year, and trying to cut costs wherever it can. According to the state's nonpartisan Legislative Council Staff and the Governor's Office of State Planning and Budgeting, the state's budget is estimated to have a hole of around $750 million. The Colorado Department of Personnel & Administration said that the cost of providing GLP-1 medications has surged in recent years. Between July 2023 and December 2023, the cost was $1.5 million; in the six months that followed, it went up to $4 million; and between July 2024 and December 2024, it reached $7 million. "The growth in popularity in these medications for weight loss has led to exponential growth in costs," Schulte told Newsweek. "The State of Colorado is facing a tough budget year, and difficult decisions need to be made to ensure a balanced budget," he added. "This proposal, which will need to be approved by the legislature, would save an estimated $16,847,576 in fiscal year 2025-2026 (July 1, 2025 - June 30, 2026)." Doug Platt, a spokesperson for the administration, told the Colorado Sun that "in a difficult budget environment, tough decisions must be made by the legislature to deliver a balanced budget and protect critical funding for the issues Coloradans care about most." The move, Schulte pointed out, is not unprecedented. In December, The Atlantic reported that West Virginia was stopping to cover obesity drugs for state employees—even as the state has the highest obesity rate in the country. And in January 2024, the Associated Press reported that North Carolina was canceling coverage for GLP-1s for state workers. "Coverage of this class of medication for weight loss could result in increasing the premiums for all individual subscribers, even those not taking the medication," Schulte said. "We are dedicated to ensuring we are good stewards of taxpayer dollars while also keeping health costs low for our state employees."

What People Are Saying

Colorado State Senator Dafna Michaelson Jenet told the Colorado Sun: "I've personally begged the governor's office to not implement this policy switch. We are going to be thrown back into a health state that is dangerous and expensive to care for. It's just so maddening that we have this medicine that solves a problem and we're saying it's not an important enough problem to solve." Hilary Glasgow, executive director of union Colorado WINS, told Newsweek in a written statement: "We want to work with the State to address this because we know coverage for these medications is critical for Colorado's state workers, especially as they deal with chronic understaffing that often means stressful and unhealthy working conditions that contribute to the causes of obesity. "It's shortsighted to eliminate coverage that helps prevent obesity-related diseases that are often treated with other expensive drugs. And of course we need to recognize this would have a disproportionate impact on women—they are the majority of people prescribed GLP1s." She told the Colorado Sun: "I assume that if the doctors are prescribing this for people that they are supposed to be on it and they will be upset if the state stops covering it. The members I've been talking to are upset about it."

What Happens Next

According to data provided by Colorado WINS, 3,422 state employees were taking Wegovy in 2024, and 2,000 others were on Ozempic. An additional 1,100 state employees were using another injectable GLP-1, Zepbound. All these workers stand to lose access to the medications when the change comes into place this summer. Update 1/24/2025, 6:45 a.m. ET: This article was updated with comment from Colorado Department of Personnel & Administration spokesperson Adrian Schulte.