Retired and current Delaware State employees will still receive coverage of GLP-1s for weight loss, but with an increased co-pay.
Projected costs continue to rise for the drugs. The Office of Management and Budget reported to the Joint Finance Committee during hearings last month that coverage of the drugs makes up an outsized portion of the state's healthcare costs, and it suggested cutting GLP-1s for weight loss from its budget.
Delaware’s 11 member State Employee Benefits Committee voted 6-5 to move ahead with a plan to continue its coverage, but with a considerable increase to the monthly co-pay: from $32 per month to $200 per month.
Among the committee's ‘no’ votes was Delaware State Education Association Exec. Director Jeff Taschner. He supports keeping GLP-1s but said the new co-pay is unfair to lower-wage state employees.
"I just think, 'how many people have the ability to absorb that kind of additional cost?'" he said. "That's what I'm worried about, and I continue to be worried about."
During negotiations, the pharmaceutical giant would not guarantee to Delaware plans to continue its cost assistance program next year, which covers up to $100 for people paying more than $25 a month.
Taschner told the SEBC that he didn't feel comfortable leaving state employees using GLP-1s without that safety net.
"Trust is to be earned," he said. "It has not been earned in this situation."
He acknowledged "financial pressure on the budget" and said, "I'm willing to take this leap of faith with the added assurance."
H proposed an alternative motion for an $132 co-pay– contingent on Novo Nordisk continuing its cost assistance program. The motion did not pass.
Approximately 6 thousand Delaware retirees and employees have used GLP-1s for weight loss since the coverage started three years ago. The new $200 co-pay goes into effect July 1.
SEBC passes new premium increase
The committee also voted to increase the its General Health Insurance Plan premiums by 2.2%, effective July 1st. The plan covers more than 135 thousand people in Delaware.
The new rate passed seven yes, three no, and one not voting.
SEBC member and former State Rep. Paul Baumbach voted against the proposed rate.
He opposes increasing premiums for retirees. He argues that group has paid into Medicare for years, and asking them to pay rate increases for the state’s coverage is unfair.
"Those populations have a different rate of cost increases," he said. "When you look as a whole at the population of 65 year olds-plus, they're paying more than they're getting from the state system."
He added the state is in a difficult position, because it needs to maintain a larger budget as medical costs rise by four to eight percent annually. And because of that, he thinks the premium increase this year is artificially low.
Last year, the premium increased 4.2 %. But in 2024 the SEBC voted to increase rates by 27%.
