BALANCE Program to Revolutionize GLP-1 Access and Costs in Medicaid and Medicare by 2027

December 24, 2025
BALANCE Program to Revolutionize GLP-1 Access and Costs in Medicaid and Medicare by 2027
  • BALANCE is set to roll out in Medicaid as early as May 2026 and in Medicare Part D in January 2027, with a bridge period through July 2026 offering eligible Part D enrollees a $50 per month payment.

  • Participation in BALANCE remains voluntary for drug manufacturers, state Medicaid agencies, and Medicare Part D plans.

  • The BALANCE model was introduced on December 23, 2025, as a voluntary program letting Medicare Part D plans and state Medicaid agencies cover GLP-1 therapies for weight management and metabolic health.

  • CMS Innovation Center Director and CMS Administrator highlighted that BALANCE aims to expand access while containing costs.

  • Historically, proposals have varied between reclassifying obesity as a chronic disease and negotiating price reductions, with BALANCE emphasizing cost-neutral expansion via price reductions.

  • CMS leadership emphasized broadening access to GLP-1s for diabetes, cardiovascular, and metabolic conditions, while negotiations will address out-of-pocket limits and standardized coverage criteria.

  • Industry stakeholders, including The Alliance of Community Health Plans, urged caution on unknown insurer costs and called for more details on affordability and implementation.

  • Under BALANCE, CMS will negotiate lower prices and uniform coverage terms with manufacturers, aiming for guaranteed pricing, possible price caps, standardized eligibility, and inclusion of lifestyle support programs.

  • About 70% of U.S. adults are overweight or obese, underscoring the potential public health impact of wider GLP-1 access.

  • BALANCE seeks to improve access and contain costs for patients and taxpayers with nationwide coverage alignment.

  • Eligibility targets obesity-related conditions such as prediabetes, cardiovascular disease, diabetes, uncontrolled hypertension, and severe obesity, with roughly 10% of Medicare enrollees potentially eligible.

  • Compared with current pricing, BALANCE could reduce monthly costs from over $1,000 to much lower levels, with government-negotiated injectables around $245 per month.

Summary based on 4 sources


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