Government Health Plans Dominate Weight-Loss Drug Coverage

Government health plans in the U.S. provide significant coverage for new weight-loss drugs, overshadowing private insurers. Medicaid is the largest provider, covering 31.6 million people for drugs like Wegovy and Zepbound. Despite the high costs of these medications, they play a crucial role in obesity management.

Government health plans in the United States have emerged as the primary coverage providers for new weight-loss drugs, outpacing private employers and insurers. An analysis shared with Reuters suggests that state Medicaid programs, catering to low-income families, cover 31.6 million people for popular medications such as Novo Nordisk's Wegovy and Eli Lilly's Zepbound.

The AXIACI Obesity Coverage Nexus database indicates that 52.2 million Americans benefit from government-funded health plans, including 14.6 million federal workers and their dependents, along with 6 million state and local government employees and their families. This figure overshadows the 13.7 million covered under commercial health plans.

Despite high costs, weight-loss drugs are crucial for managing obesity, affecting over 100 million U.S. adults. The price tag, exceeding $1,000 monthly, has sparked backlash from Congress. Novo and Lilly emphasize potential savings through widespread insurance coverage, as untreated obesity can lead to various health issues.

(With inputs from agencies.)