Understanding the BALANCE Model for GLP-1 Medications in Medicare and Medicaid - Summary - MDSpire

Understanding the BALANCE Model for GLP-1 Medications in Medicare and Medicaid

  • By

  • Meredith Freed

  • Juliette Cubanski

  • Elizabeth Williams

  • April 22, 2026

  • 0 min

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Objective:

To describe the current coverage of GLP-1 medications in Medicare and Medicaid, the specific goals of the BALANCE Model, and the efforts to expand access and lower costs.

Key Findings:
  • 56% of GLP-1 users find these medications difficult to afford, with one in four stating they are 'very difficult' to afford.
  • Medicare is prohibited from covering obesity drugs, while Medicaid coverage varies significantly by state, with only 13 states providing coverage for GLP-1s for obesity as of January 2026.
  • Significant increases in GLP-1 prescriptions and spending in Medicare and Medicaid have been observed, reflecting growing demand.
Interpretation:

The BALANCE Model aims to address coverage gaps for GLP-1 medications, particularly for obesity, but faces significant challenges due to existing legal and budgetary constraints, which may hinder its implementation.

Limitations:
  • Current law restricts Medicare from covering obesity drugs, limiting access for beneficiaries.
  • State-level variability in Medicaid coverage creates disparities in access to GLP-1 medications.
  • The BALANCE Model is temporary and set to end in December 2031, raising concerns about long-term access.
Conclusion:

The BALANCE Model represents a significant step towards improving access to GLP-1 medications for obesity in Medicare and Medicaid, although its future and effectiveness remain uncertain due to legal and budgetary challenges.

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