California seeks to cut Medicaid coverage for weight loss drugs, Bloomberg says

Lawmakers in California are seeking to cut Medicaid coverage for some expensive weight loss drugs, such as Novo Nordisk’s (NVO) Wegovy and Eli Lilly’s (LLY) Zepbound, in an effort to reduce the state’s $12B budget deficit, Bloomberg Law’s Andrew Oxford reports. Lawmakers eliminated Medicaid coverage for such drugs when prescribed for weight loss, though they would still be covered when used for diabetes treatment, in a budget passed earlier this month. The move is expected to save the state $85M in the fiscal year that starts July 1, a savings that is estimated to grow to $680M annually by mid-2029, Oxford writes.