---
type: source
title: "States Retreat from GLP-1 Obesity Coverage: 4 States Cut, 13 Remain (Down from 16)"
author: "Stateline / KFF Health News"
url: https://stateline.org/2025/11/28/states-retreat-from-covering-drugs-for-weight-loss/
date: 2025-11-28
domain: health
secondary_domains: []
format: article
status: unprocessed
priority: high
tags: [GLP-1, Medicaid, state-policy, access, obesity, coverage, equity, semaglutide]
---

## Content

States are retreating from covering GLP-1 medications for weight loss in Medicaid, driven by cost pressures and state budget challenges. As of January 2026, only 13 state Medicaid programs cover GLP-1s for obesity treatment under fee-for-service, down from 16 states in 2025. Four states eliminated coverage effective January 1, 2026:

**California**: Eliminated coverage for GLP-1s when used for weight loss effective January 1, 2026. Maintains coverage for other medically accepted indications (diabetes, cardiovascular disease prevention). Largest state Medicaid program by enrollment.

**Pennsylvania**: Medicaid stopped covering GLP-1s for weight loss for adults 21 and older starting January 1, 2026. Children and young adults under 21 retain coverage (federal law requires Medicaid to cover all medically necessary treatments for people under 21).

**South Carolina**: Ended coverage January 1, 2026.

**New Hampshire**: Ended coverage effective January 1, 2026.

**Michigan**: Did not eliminate coverage but restricted to beneficiaries with BMI ≥40 with strict prior authorization criteria, effective January 1, 2026.

**Additional states considering restrictions**: Rhode Island, Wisconsin, and others are evaluating new limitations.

Primary stated reason across all states: cost. GLP-1 medications (Wegovy, Zepbound) cost $800-$1,000+/month at list price. States cite significant costs associated with coverage and recent state budget challenges including federal funding cuts.

**Federal context**: The BALANCE model (CMS CMMI) was announced in January 2026 as a voluntary mechanism to expand coverage through negotiated drug pricing, launching in Medicaid in May 2026 and Medicare Part D in January 2027. However, participation is voluntary for states, manufacturers, and Part D plans — states that cut coverage would need to voluntarily opt back in through BALANCE.

**Medicare Bridge**: CMS launched a Medicare GLP-1 Bridge program (July 1 - December 31, 2026) at $50/month copay. Critical limitation: Low-Income Subsidy (LIS) beneficiaries cannot use their cost-sharing subsidies for the Bridge — the $50/month copay applies even to the poorest Medicare beneficiaries.

## Agent Notes

**Why this matters:** This is the structural documentation of the access infrastructure collapse happening simultaneously with the evidence that GLP-1 continuous delivery is required for effect. Session 21 established that GLP-1 benefits revert within 1-2 years of cessation; this source documents that the population with highest metabolic disease burden (Medicaid) is losing access to the continuous delivery infrastructure. The compounding failure thesis isn't theoretical — it's being actively created by policy.

**What surprised me:** California cut coverage. California is generally the most progressive state on healthcare access. If California is cutting GLP-1 obesity coverage despite being a leading health access state, this represents a more fundamental cost-sustainability problem than I initially modeled. It's not just red-state cuts — blue-state cost pressures are creating the same outcome.

**What I expected but didn't find:** Any state EXPANDING coverage in 2026. The net direction is entirely negative — retreats, restrictions, and the only federal offset (BALANCE) is voluntary and months away from launching. No state is moving toward broader coverage.

**KB connections:**
- Directly confirms the access infrastructure dismantling flagged in Session 21
- The 13-state coverage rate (26% of states) means 74% of Medicaid beneficiaries in states without obesity GLP-1 coverage
- The Michigan BMI ≥40 restriction (vs FDA-approved ≥30 threshold) creates a coverage gap for the 30-39 BMI range where preventive intervention is most cost-effective
- Connects to: [[value-based care transitions stall at the payment boundary]] — even "value-based" framing can't overcome $1,000/month drug prices
- Connects to: [[GLP-1 receptor agonists are the largest therapeutic category launch in pharmaceutical history but their chronic use model makes the net cost impact inflationary through 2035]]

**Extraction hints:**
- Claim candidate: "State Medicaid GLP-1 obesity coverage is contracting, not expanding — 4 states eliminated coverage in 2026 while BALANCE's voluntary launch mechanism offers no guaranteed offset — creating an access infrastructure gap for the population with highest metabolic disease burden"
- Frame as: knowledge (GLP-1 effectiveness) advancing while access infrastructure deteriorates — the institutional distribution failure pattern from Session 19 (SELECT trial finding)
- The California cut is worth flagging specifically — California cutting = cost problem that ideological commitment can't overcome

**Context:** KFF is the authoritative tracker of state Medicaid policy changes. The Stateline article synthesizes state-by-state cuts from multiple journalists. The pattern across states with very different political compositions (CA, PA, SC, NH) suggests this is a fiscal response, not an ideological one.

## Curator Notes (structured handoff for extractor)

PRIMARY CONNECTION: [[GLP-1 receptor agonists are the largest therapeutic category launch in pharmaceutical history but their chronic use model makes the net cost impact inflationary through 2035]]
WHY ARCHIVED: Confirms access infrastructure collapse — not theoretical, documented in real policy choices across ideologically diverse states including California. Creates specific divergence candidate: "access infrastructure is being dismantled precisely as continuous-treatment evidence makes it most necessary."
EXTRACTION HINT: Focus on two angles: (1) cost-sustainability of the GLP-1 continuous-treatment model for public payers; (2) the California datum as evidence that this is a structural cost problem, not a political one.
