Pennsylvania To Limit Coverage For Drugs Like Wegovy And Zepbound

The Pennsylvania state budget increases funding in several areas, but will cut costs by limiting coverage for glucagon-like peptide-1 drugs such as Wegovy and Zepbound for people in the Medicaid insurance program beginning Jan. 1.

The state’s Medicaid program, called Medical Assistance, will no longer cover GLP-1 drugs solely for obesity and weight loss, but will continue to do so for people with diabetes and other health conditions.

Pennsylvania started paying for GLP-1 drugs for obesity in 2023. But the cost to the state rose as an increasing number of enrollees obtained prescriptions.

The commonwealth spent $650 million for GLP-1 drugs in Medicaid, for all reasons, in 2024, according to state officials. Lawmakers estimate it would soon cost over $1 billion annually.