Weight-loss drugs becoming too expensive for some St. Louis-area public schools to insure
ST. LOUIS — The expanding use of weight-loss injectable medicines is prompting some St. Louis-area school districts to consider trimming employee health coverage.
The Francis Howell Board of Education voted last month to remove coverage of all medications for weight-loss treatment.
The Special School District of St. Louis County considered a similar move, but tabled a vote on Oct. 22. The district is currently operating at a $74 million deficit and looking at other ways to cut costs.
And the Rockwood School District, hit by rising costs associated with the drugs, increased the requirements to qualify for them this month, said spokeswoman Mary LaPak.
Popular brands such as Ozempic, Wegovy and Mounjaro were initially approved by the U.S. Food and Drug Administration to manage Type 2 diabetes.
But demand began to skyrocket as the FDA started to gradually approve some for weight loss. The drugs, which can cost upwards of $1,300 a month without insurance, slow the rate food moves through the digestive system, making users feel fuller longer .
Francis Howell's current fund balance was insufficient to meet growing prescription costs and expenses increased beyond anything on the books, said Chris Johnson, a consultant with Francis Howell's broker, Marsh and McLennan.
"This is a clear and present danger to the fiscal sustainability of any public institution or private institution at the current cost and utilization levels," Johnson told the board of the St. Charles County school district at a recent meeting.
The Special School District added the medications to its health plan in April 2023 with an estimated cost of $110,000 a year and blew threw that estimate within months. By July 2024, 704 patients were using the medications at a cost of $1.7 million, district records show .
"We know they would be beneficial for a lot of folks, but they are just way, way overpriced at this time," Scott James of Marsh McLennan told SSD's board during a presentation last month.
SSD tabled a vote to axe coverage of the medications for weight loss use last month to explore other options and research. Spokeswoman Jennifer Henry said there's currently no set date when the board will consider it again.
In Francis Howell, board member Steven Blair said demand had jumped from 50 people on the health plan to 324 in the last six months.
"We expect that growth rate to continue to grow and cannot guess how many of the 4,000 people on our health plan will also be prescribed the medicine for weight loss," Blair wrote on Facebook .
Francis Howell's health plan will continue to cover the medication for treatment of diabetes.
