A bill that would require state-regulated insurers and Medicaid to cover weight loss medications for people who are obese or prediabetic cleared a major hurdle at the Colorado State Capitol. The bill passed the Senate Appropriations Committee despite opposition from the Division of Insurance and the Department of Health Care Policy and Financing. Both insist that the measure is cost-prohibitive.

According to legislative fiscal analysts, it would cost the state Medicaid system $86 million in the first year alone. An actuarial analysis by the Division of Insurance found it could also increase insurance premiums by up to $30 million a year.

But none of the studies looked at potential cost savings, and that didn’t sit well with some members of the Appropriations Committee, including the chairman, state Sen. Jeff Bridges.

“I can’t believe that an actuarial study conducted by the state following the direction of a bill passed by the General Assembly did not include cost savings,” he said.

Bridges stopped short of accusing the Insurance Division of violating state law, which requires actuarial reviews to include both potential costs and cost savings.

“Unfortunately we don’t have the data on the potential savings because they just decided not to look into that. I’m extraordinarily upset about that,” he said.

So are state Sen. Dafna Michaelson Jenet and state Sen. Joanne Ginal, sponsors of the bill.

“The use of these drugs can help in the long term with chronic kidney disease, with heart disease, to prevent strokes, cancers and many other diseases,” Ginal said.

Michaelson Jenet says the analyzes were inflated to kill the bill.

“I got the tax note and said, ‘Okay, there’s something fishy here,’” he said.

The Department of Healthcare Policy and Financing insists that insurers should only cover lifestyle therapies such as diet and exercise.

Michaelson Jenet noted that there is no other disease for which only lifestyle therapy, and not medications, is covered.

“If we want to look at the definition of insanity (doing something over and over again and expecting different results), that’s what it is,” he said.

The Department also argued that drug coverage would interfere with its equity plan.

State Sen. Julie Gonzales said that doesn’t make sense.

“Is allowing people to live healthier, fuller lives going to interfere in any way with your equity plan? I encourage the Department to figure it out and do more.”

State Sen. Barb Kirkmeyer noted that the state gives the department $5 billion a year, more than it spends.

“The reality is that they will also have underutilized general fund money that will be able to cover this in January 2025,” he said.

Gonzalez had a better idea.

“Maybe it’s time for them to go on a diet,” he said.

The bill was amended to take effect in January 2025 and the committee passed it with only one dissenting vote. It must be approved by the full Senate before going to the House.