Coverage Of Weight Loss Drugs By Medicaid Plans Continues To Lag

Novo Nordisk's Wegovy (semaglutide), a GLP-1 weight loss drug. Photographer: George Frey/Bloomberg © 2023 Bloomberg Finance LP

California recently passed a budget for 2025-2026 that eliminates Medicaid coverage for GLP-1 agonists for weight loss. Other states are considering similar cuts. States are struggling to close gaps in budgets. Enactment of The Big Beautiful Bill will likely add pressure on budget finances. It’s hard to envision a scenario in which state Medicaid agencies expand coverage of weight loss treatments in the short term.

About 40% of adult Americans are considered obese. Rates of obesity have been steadily on the rise since 1980. The Harvard T.H. Chan School of Public Health reminds us that obesity increases the risk of developing conditions such as diabetes,