U-Rock
Closings & Delays
U-Rock

Indiana Medicaid to Expand Coverage of GLP-1 Obesity Medications Under New Federal Program

August 4, 2026
Article Image

INDIANAPOLIS, Ind. (WLKI) - Indiana Medicaid recipients will soon gain access to GLP-1 medications for obesity after Gov. Mike Braun directed the state to participate in a new federal initiative aimed at lowering the cost of the treatments.


The Indiana Capital Chronicle reported that Braun announced Thursday the Indiana Family and Social Services Administration will join the federal BALANCE model, a program created by the Centers for Medicare & Medicaid Innovation to expand access to obesity medications while reducing costs for state Medicaid programs.

The initiative includes agreements with drug manufacturers, including Indianapolis-based Eli Lilly and Novo Nordisk, to provide discounted pricing on GLP-1 medications commonly prescribed to treat obesity.


Under the program, Indiana Medicaid will pay $85.16 per month for each eligible participant, with the remainder of the estimated $245 monthly cost covered through federal funding and manufacturer discounts.


Drug manufacturers have also agreed to provide lifestyle support services at no additional cost.


"Indiana is proud to expand access to essential treatment for eligible Hoosiers," Braun said in a news release. "This agreement reflects our commitment to Make Indiana Healthy Again by pursuing practical solutions that increase healthier lives."


State officials have not yet released specific eligibility requirements or a timeline for when coverage will begin, noting that details of the agreement are still being finalized.


The governor's office said expanding access to obesity treatment could improve long-term health outcomes, help more residents remain in or return to the workforce, and reduce dependence on public assistance programs. David A. Ricks, chair and chief executive officer of Eli Lilly, praised Indiana's decision to participate in the program.


"Obesity is a serious, chronic disease, and addressing it can open the door to better health," Ricks said in a statement. "Here in Indiana, 71% of adults are living with obesity or overweight. This toll on our state's health is also a toll on our economy, costing an estimated $10.7 billion a year, or nearly 2% of GDP."

Ricks said participation in the BALANCE model will expand access to medications such as Foundayo and Zepbound for eligible Medicaid recipients.


"Indiana opting into the BALANCE model is a meaningful step forward," he said. "We're grateful for the governor's leadership in making breakthrough medicines like Foundayo and Zepbound available to eligible Medicaid patients. We're proud our home state is taking action to expand access to obesity treatment, so more Hoosiers can get the care they need."


Indiana Medicaid currently provides health coverage for approximately 1.9 million Hoosiers. The state joins other participants in the federal initiative aimed at making obesity treatments more affordable while encouraging healthier outcomes through medication and lifestyle support.