Please ensure Javascript is enabled for purposes of website accessibility Venkat, Cutler to introduce bill that would reduce state costs, ensure Medicaid patient access to GLP-1 medications

Venkat, Cutler to introduce bill that would reduce state costs, ensure Medicaid patient access to GLP-1 medications

Rep. Arvind Venkat    May 12, 2025 | 9:41 AM

HARRISBURG, May 12 – With the growing demand for GLP-1 medications to treat obesity, state Reps. Arvind Venkat and Bryan Cutler are preparing to introduce legislation that would ensure those drugs remain available to Medical Assistance patients while significantly cutting costs to the state. 

The bill would allow Pennsylvania to purchase GLP-1 medications for Medicaid patients at a lower cost by implementing a “subscription model” – a system in which a state agrees to pay a certain amount per treatment up to a cap, at which point the drug manufacturer provides additional treatments at no cost.

“GLP-1 drugs that treat obesity can also help patients avoid serious and costly diseases like type 2 diabetes, cardiovascular disease, kidney disease and potentially others,” said Venkat, a physician and legislator who is a member of the House Health and Human Services committees. “For the state, healthier outcomes for Medicaid patients translate to significant cost savings.

“The challenge is that these medications are costly to the state now, while the savings from lower disease rates won’t be realized until future years. By implementing a subscription model, our bill would help the state significantly reduce upfront costs without limiting the number of patients who can receive needed treatment for obesity.”

The subscription model – colloquially also known as the “Netflix model” – gives a state the flexibility to find a good price based on bulk purchasing and ensures greater certainty for pharmaceutical costs. Drug companies have shown a willingness to participate because of the large-scale nature of the purchase.

“This legislation will be vital for Pennsylvanians who need medication to fight obesity,” said Cutler, R-Lancaster. “I want to thank Rep. Venkat for joining me in proposing this legislation and continuing the effort to support Pennsylvanians in their health goals.”

The lawmakers said that both Louisiana and Washington have successfully implemented the subscription model for Hepatitis C treatments and that Louisiana’s Medicaid Program has seen the cost of Hepatitis C medications drop from a potential high of $760 million per year to $35 million per year under this model.

“With demand only growing for GLP-1 medications and increasing evidence of their medical efficacy, Pennsylvania needs to be looking at ways to ensure a continuing availability for Medicaid patients,” Venkat said. “The subscription model could help us achieve that goal while also saving the state millions in prescription costs.”

The lawmakers will begin gathering co-sponsors for the legislation today and plan to introduce it later this week.