TO REQUIRE THE ARKANSAS MEDICAID PROGRAM TO EVALUATE CLAIMS FOR DIAGNOSES FREQUENCY OF OBESITY-RELATED CONDITIONS AND PRESENT THE COSTS.

segalco.com PURPOSE OF BILL: HB 1332 To require the Arkansas Medicaid Program and health Benefit Plans to cover glucagon-like peptide-1 receptor agonists, also known as GLP-1 agonists, when prescribed for weight loss. ACTUARIAL STATEMENT The Fiscal Impact Statement was prepared according to generally accepted actuarial principles and practices, in compliance with ACT 112. The Statement provides an estimate of the financial and actuarial effect of the proposed change(s) on the Plans, if possible. The Statement makes no comment or opinion with regard to the merits of the measure for which the Statement is prepared; however, any identified technical or mechanical defects have been noted. We have reviewed the input and results of our analysis for reasonableness and relied upon the data and information provided by the Plans and their Claims Processing Contractors. 3/12/2025 _________________________________________ _________________ Patrick Klein, FSA, MAAA Date Vice President, Segal 3/12/2025 _________________________________________ __________________ Matthew Kersting, FSA, MAAA Date Vice President, Segal PROJECTED COSTS Plan Design Change Estimated Cost/(Savings) Plan EBD Adding Cove

Arkansas Department of Human Services - Division of Medical Services HB 1332 - GLP-1 - Fiscal Impact Analysis Graded Fiscal Impact Description2% Utilization Increase5% Utilization Increase Total Computable $25,225,518 $63,063,796 Cost Pre Rebate Pre Federal Share Pre $17,584,078 $43,960,196 RebateRebate State Share Pre $7,641,440 $19,103,600 Rebate We are currently spending $11.5 Million per year on GLP-1s for diabetes and other non obesity FDA Approved indications. We estimate a graded range total computable impact of $25 - $63 Million, or $7.6 - $19.1 Million State Share. This is the estimate of immediate cost, excluding any drug rebate estimates which are received in later quarters. Prepared by Arkansas Department of Human Services

segalco.com PURPOSE OF BILL: HB 1332 To require the Arkansas Medicaid Program to cover glucagon-like peptide-1 receptor agonists, also known as GLP-1 agonists, when prescribed for weight loss. ACTUARIAL STATEMENT The Fiscal Impact Statement was prepared according to generally accepted actuarial principles and practices, in compliance with ACT 112. The Statement provides an estimate of the financial and actuarial effect of the proposed change(s) on the Plans, if possible. The Statement makes no comment or opinion with regard to the merits of the measure for which the Statement is prepared; however, any identified technical or mechanical defects have been noted. We have reviewed the input and results of our analysis for reasonableness and relied upon the data and information provided by the Plans and their Claims Processing Contractors. 3/31/2025 _________________________________________ _________________ Patrick Klein, FSA, MAAA Date Vice President, Segal 3/31/2025 _________________________________________ __________________ Matthew Kersting, FSA, MAAA Date Vice President, Segal PROJECTED COSTS Plan Design Change Estimated Cost/(Savings) Plan EBD No Impact No Impact PRICING APPROACH