Wegovy will be covered by some insurers, but not for weight loss: report

By Tomi Kilgore

WSJ report says CVS, Elevance and Kaiser Permanente will cover Wegovy for some on Medicare with heart conditions

Some large health insurers in the U.S. will start covering Wegovy, which has become a popular anti-obesity drug - but not for those using it to lose weight, according to a report by The Wall Street Journal.

The WSJ report said CVS Health Corp. (CVS), Elevance Health Inc. (ELV) and Kaiser Permanente will start covering the drug, made by Denmark-based Novo Nordisk A/S (NVO) (DK:NOVO.B), but only for people with heart disease, who are covered by a Medicare drug-benefit plan who have heart disease and are using Wegovy to reduce risks of heart attacks and strokes.

The U.S.-listed shares of Novo Nordisk rose 0.5% in morning trading. It has gained 7.4% so far in March, and has run up 41.4% amid a six-month win streak.

Elevance, which runs many Blue Cross and Blue Shield plans, said it would also extend coverage to those insured by commercial plans, the WSJ report said.

The news comes a week after the Centers for Medicare and Medicaid Services said it would start covering Wegovy for older adults if they are using it to treat serious heart disease.

Also read: Wegovy gets FDA approval to reduce risk of heart issues in overweight adults.

Any help from insurers will be welcomed by those who need Wegovy, as the drug costs roughly $1,100 to $1,300 a month.

But there remains a debate in Congress over what should and shouldn't be covered, as Medicare coverage of the expensive drug could inflate the federal deficit.

Eleanor Laise contributed to this article.

-Tomi Kilgore

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03-28-24 0955ET

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