BOSTON – The administration of Boston Mayor Michelle Wu is considering dropping GLP-1 coverage for weight loss for City of Boston employees because of “skyrocketing” health insurance costs that are straining the city’s finances.
Chief Financial Officer Ashley Groffenberger said in a letter to the Boston City Council on Monday that the city has confirmed there will be significant increases in employee premiums and health insurance costs for the fiscal year 2027 budget, due in part to increased use of GLP-1 weight loss drugs such as Ozempic and Wegovy.
The city is facing a potential 22.6% rate increase for the next fiscal year. Employer health insurance costs, which cover roughly 55,000 employees, their families and retirees, are projected to increase by nearly $80 million for the city, Boston Public Schools and the Boston Public Health Commission over fiscal year 2026, compared with the average annual increase of $10.6 million over the last eight years, Groffenberger said…