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

Experts say any short-term financial benefit will be outweighed by long-term health costs related to obesity

Faced with high demand for GLP-1 drugs, some American cities and states that previously covered the cost of the weight-loss medication for low-income residents and public employees have now started to restrict or eliminate coverage.

The pullback stems from the dramatic increase in public spending on drugs such as Ozempic and Wegovy in recent years.