Novo Nordisk Fights to Maintain Medicaid Coverage for Weight-Loss Drug Amid State Budget Cuts”

Novo Nordisk is actively working to preserve Medicaid coverage for its obesity drug, Wegovy, as several U.S. states plan to reduce or eliminate reimbursement due to rising costs. The company previously lobbied 14 states to include Wegovy in Medicaid, arguing that the drug could lower long-term healthcare expenses by reducing obesity-related conditions. However, states like California, North Carolina, Pennsylvania, and Connecticut are reconsidering coverage due to the drug’s high price and increasing demand.

To counter these challenges, Novo has mobilized advocacy groups and health professionals to support continued Medicaid coverage. Some of these groups, such as the North Carolina Obesity Society, have ties to Novo employees, raising concerns about transparency and potential conflicts of interest. Critics, including Senator Bernie Sanders, argue that the company could lower prices significantly—citing studies suggesting Wegovy could remain profitable at a $5 monthly price point.

The debate intensifies amid broader political pressure to reduce drug prices. President Donald Trump has pledged to lower the cost of weight-loss drugs like Ozempic, which shares the same active ingredient as Wegovy. Novo’s stock has experienced volatility in response to these developments, including a 6% drop following Trump’s remarks.