Rhode Island Gov. Dan McKee’s proposed fiscal year 2027 budget suggests eliminating coverage for GLP-1 drugs prescribed for weight loss under the state Medicaid program. The move reflects growing concerns over the rapidly rising cost of these medications.
According to the Executive Office of Health and Human Services, which administers Rhode Island’s Medicaid, per-member monthly payments to Medicaid managed care plans roughly quadrupled between the start of fiscal year 2024 and the end of fiscal year 2025. The agency attributes much of the increase to the surge in demand for weight-loss drugs such as Wegovy, Zepbound, and Saxenda.
McKee’s plan, introduced on Jan. 15, would remove these drugs from Medicaid’s formulary for weight loss beginning Oct. 1, potentially saving the state $6.3 million in general revenue. Coverage for GLP-1 prescriptions for diabetes would remain unaffected…