Novo Nordisk fights to keep medicaid coverage for weight-loss drug Wegovy
Pharmaceutical giant Novo Nordisk is fighting to maintain Medicaid coverage for its popular weight-loss drug Wegovy, as several U.S. states move to limit or end reimbursements due to rising costs and overwhelming demand.
The Danish company’s lobbying efforts had previously convinced 14 states to include Wegovy under Medicaid programs, arguing that obesity treatment could save public funds by preventing chronic illnesses like diabetes and heart disease, News.Az reports, citing Reuters.
However, states including California, North Carolina, Pennsylvania, and Connecticut have since announced plans to scale back or cut coverage, citing unsustainable spending levels.
“Almost four in ten adults on Medicaid have obesity, so any change in access could have significant financial impacts,” said Liz Williams of the nonprofit KFF.
Publicly funded programs currently account for most U.S. coverage of weight-loss drugs. A pullback could pose a serious challenge for Novo, which has faced slower U.S. growth, executive shake-ups, and increasing competition from Eli Lilly.
In response, Novo has rallied health organizations and advocacy groups to defend Medicaid coverage.
“The health care system must recognize obesity as a chronic, treatable disease,” Novo said in a statement. “Patients deserve affordable access to care, including insurance coverage.”
One such partner, the Alliance for Women’s Health and Prevention, urged California Governor Gavin Newsom to reconsider his plan to end coverage. According to federal data, California’s Medicaid program spent nearly $1 billion on Wegovy prescriptions between 2022 and 2024.
“California will pay either way — for treatment now or the consequences later,” said Millicent Gorham, the group’s CEO, in a letter to state leaders.
Internal emails reviewed by Reuters show Novo encouraging other advocacy groups to continue pressing lawmakers to preserve coverage.
Despite the setbacks, Gorham says she remains determined: “We’re going to keep fighting to ensure patients have access to obesity treatments.”
Similar news
