• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
HealthDrugs

North Carolina drops coverage for Wegovy and Ozempic, with implications for anti-obesity drug market projected to hit $100B by 2030

By
Simone Foxman
Simone Foxman
,
Madison Muller
Madison Muller
, and
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Simone Foxman
Simone Foxman
,
Madison Muller
Madison Muller
, and
Bloomberg
Bloomberg
Down Arrow Button Icon
January 27, 2024, 1:32 PM ET
Medications like Novo Nordisk’s Wegovy and Ozempic have soared in popularity, but are expensive and require long-term use.
Medications like Novo Nordisk’s Wegovy and Ozempic have soared in popularity, but are expensive and require long-term use.George Frey/Bloomberg via Getty Images

North Carolina is cutting off coverage of anti-obesity medications for state employees, citing soaring costs and a lack of agreement on pricing from drugmakers.

Recommended Video

The decision affects a class of drugs known as GLP-1s, which are used to treat diabetes along with helping with weight loss. The medications, like Novo Nordisk A/S’s Wegovy and Ozempic and Eli Lilly & Co.’s Zepbound, have soared in popularity, but are expensive and require long-term use.

North Carolina’s State Health Plan, which covers about 480,000 people, spent $100 million on the drugs last year, and its consultant projected a $1.5 billion loss by 2030 if it continued to pay for them. The SHP said it tried to stop covering new patients starting this year, but Novo Nordisk responded by withdrawing rebates.

The loss of the rebates meant a $54 million increase in the amount spent on prescriptions for existing patients, according to data from SHP. SHP said it tried to negotiate lower prices with drugmakers, but failed to reach an agreement, and the board on Thursday voted to drop all coverage as of April.

The decision could carry wider implications for an anti-obesity drug market Wall Street projects will grow to $100 billion or more by 2030. Other states and insurers are also facing rising costs and pressure from drugmakers to cover the medications.

“This is not something the board desired to do, but was forced to do,” Treasurer Dale Folwell, who oversees SHP, said in an interview. “These manufacturers have to understand that there’s a need to put patients over profits.”

Many state-backed plans don’t cover GLP-1s for weight loss, but the ones that do are trying to limit rapidly increasing costs. Connecticut introduced a trial lifestyle-management program for state employees seeking the drugs for weight-loss treatment in July, after spending on the class rose 50% annually since 2020. Virginia tightened restrictions on which Medicaid enrollees can receive them for obesity.

Read More: Ozempic Mania’s Billions in Bills Are Coming for Taxpayers

“We do not support insurers or bureaucrats inserting their judgment in these medically driven decisions,” a spokesperson for Novo Nordisk said in an emailed statement, adding that it would continue to engage with plan officials on cost concerns. “We urge Treasurer Dale R. Folwell and the NCSHP to reconsider this decision and put patients first.”

Both Folwell and Novo Nordisk said they would continue to attempt to reach an agreement on costs. The treasurer said the plan had also been in discussions through this week with Eli Lilly. A spokesperson for Eli Lilly didn’t immediately respond to a request for comment outside regular business hours.

“Every state has been wrestling with it, every professional association that my staff is a part of has had some discussion about it,” Sam Watts, director of SHP, said in an interview. “But to our knowledge, we’re the first major state health plan to act on it.”

The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.
About the Authors
By Simone Foxman
See full bioRight Arrow Button Icon
By Madison Muller
See full bioRight Arrow Button Icon
By Bloomberg
See full bioRight Arrow Button Icon

Latest in Health

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Health

death
Environmentclimate change
Meet ‘Green Death’: the burial practices for activists worried about climate change and carbon footprint
By Dorany Pineda and The Associated PressMay 2, 2026
15 hours ago
drinks
CommentaryFood and drink
We need a new way of thinking about drinking: Time to replace the ‘standard drink’ with advice people can actually use
By Justin KissingerMay 2, 2026
21 hours ago
Simple App Review (2026): Expert Tested and Reviewed
Healthmeal delivery
Simple App Review (2026): Expert Tested and Reviewed
By Emily PharesApril 30, 2026
3 days ago
Premium card perks are ‘designed to create a win-win-win for everyone’ but customers are paying with heavy annual fees and data
Personal FinancePersonal Finance Evergreen
Premium card perks are ‘designed to create a win-win-win for everyone’ but customers are paying with heavy annual fees and data
By Catherina GioinoApril 30, 2026
3 days ago
hoskins
Commentaryoffices
Gensler Co-Chair: Hot-desking was supposed to save money. It may be costing you your culture
By Diane HoskinsApril 30, 2026
3 days ago
raw milk
Politicsmilk
Risk of paralysis, bacteria, even death is no match for Americans’ thirst for raw milk
By Laura Ungar, Jonel Aleccia and The Associated PressApril 29, 2026
3 days ago

Most Popular

Scott Bessent on financial literacy: 'it drives me crazy' to see young men in blue-collar construction jobs playing the lottery
Personal Finance
Scott Bessent on financial literacy: 'it drives me crazy' to see young men in blue-collar construction jobs playing the lottery
By Fatima Hussein and The Associated PressMay 1, 2026
2 days ago
Gen Z is rebelling against the economy with ‘disillusionomics,’ tackling near 6-figure debt by turning life into a giant list of income streams
Economy
Gen Z is rebelling against the economy with ‘disillusionomics,’ tackling near 6-figure debt by turning life into a giant list of income streams
By Jacqueline MunisMay 2, 2026
15 hours ago
Stop donating to Harvard and the Ivy League. There's a better option that MacKenzie Scott already figured out
Commentary
Stop donating to Harvard and the Ivy League. There's a better option that MacKenzie Scott already figured out
By Ed Smith-LewisMay 2, 2026
21 hours ago
The American household just took an 81% margin cut. Wall Street hasn’t priced it in
Commentary
The American household just took an 81% margin cut. Wall Street hasn’t priced it in
By Katica RoyMay 2, 2026
18 hours ago
Current price of oil as of May 1, 2026
Personal Finance
Current price of oil as of May 1, 2026
By Joseph HostetlerMay 1, 2026
2 days ago
A Chick-fil-A worker got fired and then showed up behind the register to allegedly refund himself over $80,000 in mac and cheese
Law
A Chick-fil-A worker got fired and then showed up behind the register to allegedly refund himself over $80,000 in mac and cheese
By Catherina GioinoMay 1, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.