US states drop Medicaid coverage of GLP-1 weight-loss drugs as demand rises

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Faced pinch precocious request for GLP-1 drugs, immoderate American cities and states that antecedently covered nan costs of nan weight-loss medicine for low-income residents and nationalist labor person now started to restrict aliases destruct coverage.

The pullback stems from nan melodramatic summation successful nationalist spending connected narcotics specified arsenic Ozempic and Wegovy successful caller years.

Still, immoderate legislators and healthcare providers reason that dropping sum of nan narcotics mightiness supply short-term alleviation for governments but will yet harm Medicaid recipients’ health. They reason that cities and states will past person to salary for much wellness problems related to obesity.

“Patients should person entree to these therapies,” said Dr Matthew Klebanoff, a professor of soul medicine astatine nan Perelman School of Medicine who has studied anterior authorization policies for GLP-1 drugs. “It’s conscionable very challenging correct now for payers to beryllium capable to spend covering these medications for everyone who could benefit.”

The obesity complaint successful nan United States among adults was 40% successful August 2023, according to nan Centers for Disease Control and Prevention. In November 2025, 12% of adults reported that they were taking a GLP-1 supplier – a 6% summation from 18 months earlier, KFF reported. Those narcotics person contributed to a alteration successful nan country’s obesity rate, which fell to 37% successful 2025, according to a Gallup report.

But that advancement has been expensive. In 2018, nan state spent $13.7bn connected GLP-1 drugs. In 2023, that number was $71.7bn, a 500% increase, according to a report successful nan aesculapian diary Jama.

Sixteen authorities Medicaid programs – nan national and authorities inaugural that provides free wellness security to low-income group – covered nan narcotics for obesity successful October 2025 (though, notably, astir states screen GLP-1 narcotics for diabetes). As of January this year, California, New Hampshire, Pennsylvania and South Carolina ended Medicaid GLP-1 supplier sum for weight loss, and Michigan started restricting sum to group classified arsenic morbidly obese, meaning they person a assemblage wide scale supra 40. Rhode Island’s politician has also proposed ending sum of nan drugs.

New York City’s wellness insurer stopped covering GLP-1 narcotics for metropolis labor successful 2025 while Boston’s leaders are considering limiting specified sum for metropolis labor because of an security complaint hike mostly driven by nan GLP-1 supplier cost.

Many states are besides facing a fund crunch owed to Donald Trump’s One Big Beautiful Bill Act, which will trim authorities Medicaid backing by $665bn complete nan adjacent decade.

“I ideate immoderate authorities that is covering these medications is having conversations astir whether they will beryllium capable to continue,” Klebanoff said.

For context, Medicaid spending connected GLP-1 narcotics successful Pennsylvania was $1.3bn successful 2025 - a whopping twice arsenic much arsenic nan erstwhile year.

During fund discussions past year, nan authorities section of quality services secretary, Val Arkoosh, said Pennsylvania was considering nan cuts “to guarantee nan medications are utilized appropriately by those who request it most, while considering costs effectiveness by limiting entree based connected assemblage wide scale aliases different wellness factors”.

A spokesperson for nan section stated successful an email to nan Guardian that nan authorities had trim immoderate sum because of an “unsustainable emergence successful costs from GLP-1s”.

The Medicaid programme now successful Pennsylvania only covers GLP-1 narcotics for group pinch glucosuria aliases those who meet a narrower group of criteria, specified arsenic those pinch slumber apnea aliases a assemblage wide scale of astatine slightest 35.

The Pennsylvania authorities typical Arvind Venkat, a physician, said nan authorities was “essentially allowing group to beryllium overmuch sicker than they should beryllium earlier we let them to person entree to a medicine which has been shown to beryllium safe”.

Alexa Canciello, a 23-year-old pinch autism, lives pinch her parents extracurricular Pittsburgh and had a weight problem for years because her encephalon doesn’t “know erstwhile to unopen disconnected nan hunger drive”, her begetter Rich said.

About a twelvemonth ago, Canciello, a Medicaid recipient, started taking nan GLP-1 supplier Zepbound. Rich said his girl mislaid almost 30lb, noting: “These GLP-1s, they are occurrence workers.”

But nan authorities stopped covering Zepbound for Canciello successful January. Without insurance, injections of it costs much than $400 each month, Rich said. Her expert alternatively prescribed a pill shape of Wegovy, which costs little but has not been arsenic effective for Canciello, who has regained weight, Rich said.

“There are a batch of group retired location that could astir apt suffer weight without GLP-1 narcotics if they conscionable subject themselves and workout more, but location is simply a conception of nan organization that cannot suffer weight, and my girl Alexa unluckily falls wrong that category,” Rich said.

Venkat, a Democrat, has introduced legislation to create a subscription exemplary for GLP-1 narcotics successful which nan authorities could participate “value-based arrangements pinch supplier manufacturers done supplemental rebate agreements”.

This would beryllium akin to an statement Louisiana made successful 2019 pinch a hepatitis C supplier shaper to create a “Netflix model”, successful which nan authorities paid a level interest for unlimited entree to nan medicine for 5 years, nan Associated Press reported.

“Whether nan supplier makers will work together to it aliases not is simply a mobility of, do you want your merchandise to beryllium marketed successful Pennsylvania to nan Medicaid organization aliases not?” Venkat said.

But supplier manufacturers do not person overmuch inducement to make specified a woody because “demand is already tremendous for GLP-1s”, Klebanoff said.

The quality services section spokesperson besides stated that manufacturers had not expressed liking successful making specified a deal.

Klebanoff believes nan costs of nan narcotics will yet alteration arsenic nan marketplace becomes much competitive.

“When nan hepatitis C treatments came retired successful nan 2010s, we had akin conversations astir really we could spend those very expensive, highly effective medications, and yet location was capable title that prices came down,” Klebanoff said.

In nan meantime, Medicaid recipients will person to find ways to entree nan drug. Klebanoff suspects much group could motion up for slumber studies to find if they suffice for GLP-1 narcotics because of slumber apnea.

Venkat thinks uncovering a measurement for nan authorities to screen nan supplier is simply a matter of governmental will.

“If each we are trying to execute is to prevention money connected a azygous twelvemonth fund basis, nan authorities is doing that,” Venkat said. “But our extremity should beryllium much than that. It should beryllium to support group healthy.”

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Source theguardian.com
theguardian.com