New CMS Obesity Drug Coverage Could Cost States Billions

The National Association of Medicaid Directors (NAMD) is raising concerns over the cost implications of CMS’ unexpected proposal Tuesday (Nov. 26) to reinterpret federal law and allow coverage of GLP-1s to treat obesity under Medicare and Medicaid. Kate McEvoy, executive director of NAMD, stressed statement to Inside Health Policy that the reinterpretation would make obesity treatment a mandatory Medicaid service as opposed to optional. “Given that states typically bear 50% of Medicaid service costs, this proposal has significant cost...