(The Center Square) – The budget passed by the North Carolina State Senate on Thursday includes $25 million to pay for weight loss drugs for state employees, only a fraction of the $100 million requested.
But State Treasurer Brad Briner praised the Senate’s decision to at least partially fund the weight loss drugs, which his predecessor, Dale Folwell, had opposed, citing the high price of the drugs.
“Frankly, we were ready to get zero, given how tight everything is,” Briner told The Center Square. “We were pleasantly surprised that they did find $25 million for us.”
The price of the drugs is trending downward, Briner said. Also, pharmaceutical companies are working on pill forms of the drugs, which now are administered only by injection, the treasurer said.
“Pills should be on the market in 2026,” Briner said. “That will also have an impact on the price of shots. Everyone prefers pills. That means the shots get cheaper.”
But weight loss drugs are only part of the solution to improve employee health, Briner said. He advocates a “comprehensive program” that combines drugs, diet and exercise.
“That’s where we want to go down the road with rather than just sending pills out by mail,” he said.
An effective program could then lower other health care costs associated with obesity, he added.
“We all know someone whose life has been changed by these medications,” Briner said. “The hope is that we will all know more of those people. That’s great for them. It’s great for their families. It’s great for their workplaces because they can show up more.”
The Senate budget bill fully funds the treasurer’s request for a 5% increase in state health plan spending. The increases have been averaging 3% historically.
“We’re appreciative of that,” Briner said.
However, North Carolina state employees and retirees could see an increase in their health insurance premiums.
The state insurance plan is projected to have a $500 million shortfall in 2026 which will increase to $800 million in 2027, Briner said.
The State Health Plan has about 750,000 people who are retired or employed by the state, including teachers, and their dependents.
It remains uncertain, however, whether the added funding for the state health system, including weight loss drugs, will remain in the final budget bill that is passed by both chambers and signed into law.
The legislature is balancing funding needs for hurricane Helen damage, regenerating the reserve fund, employees raises and other needs, said Briner.
“Would we like more money, would we prefer not raise premiums for employees, would we like cover [weight loss] drugs for everyone?” Briner asked. Of course. But that’s not the context we live in.”
