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We Pay Either Way! BDO urges we not Cut AOMs coverage by Medi-Cal

The latest budget proposal to cut anti-obesity medication (AOM) coverage by Medi-Cal will cost the state more in the long run – and pose risks to the health of California’s most vulnerable. We raise our grave concern against ceasing coverage for safe FDA-approved medications to fight the deadly, costly chronic disease obesity.

It is our understanding that the Dept of Health Care Services (DHCS) in the state acknowledged they had not examined future savings from patients. If we proceed as is, we are balancing the budget at the expense of those disproportionately impacted by obesity. Obesity is a disease that disproportionately affects Black and Brown communities, and we must all work together to solve our health equity issue.

There was reference to a Texas hospital spending as proof that “you pay either way” regarding a lack of undoc (UIS) coverage and increased costs for uninsured care in Texas that is not reimbursed. Research shows the same could be said for GLP-1 coverage for weight loss – “you pay either way.” You either treat the chronic disease, or you end up paying for and treating all of the results of failing to treat the chronic disease PLUS the resulting comorbidities. You are right, we all pay either way.

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Patients deserve better. Though no other chronic disease requires this level of justification, the math supports coverage for anti-obesity medications. More than 60% of all California adults are overweight or obese. As you know, obesity is a chronic disease that leads to life-threatening comorbidities. Nearly 27% of Californians have been
diagnosed with high blood pressure, 10% with diabetes and 7% with coronary heart disease. Those numbers increase for Californians making less than 185% of the federal poverty line.

Data shows GLP-1s improve patient health outcomes across the board. GLP-1 usersexperience a 44% reduction in risk of hospitalizations caused by major adverse cardiovascular events (e.g. stroke, heart attack and heart failure) over the 24 months following therapy initiation. Obesity reduces a patient’s overall survival and cancer-specific survival, as well as increases the risk of cancer recurrence. Obesity accounts for 47% of the total cost of chronic diseases in the U.S. It has been shown that GLP-1 use not only improves patient outcomes but results in less medical spending on behalf of each user.

Aon recently announced a workforce analysis on GLP-1s. It was announced that “Aon observed a seven-percentage point improvement in medical spend growth for GLP-1 users in the second year. If this trend is sustained over future periods, it implies significant positive impacts on population health and economic impacts extending beyond healthcare costs to reductions in absenteeism and disability and improved productivity.”

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