Hims & Hers slips on report of Medicare, Medicaid coverage for weight-loss drugs

Shares of telehealth firm Hims & Hers Health HIMS.N fall 5.2% to $62.71

Trump administration is planning to cover weight-loss drugs under Medicare and Medicaid, Washington Post reports

Proposed plan would permit state Medicaid programs and Medicare Part D insurance plans to voluntarily cover GLP-1 drugs such as Novo Nordisk's NOVOb.CO Ozempic and Wegovy, as well as Lilly's LLY.N Mounjaro and Zepbound for weight management, report says

*Needham analyst Ryan MacDonald said that broader public coverage of branded GLP-1 drugs could reduce demand for compounded alternatives offered by companies like Hims & Hers Health

"If the Medicare and Medicaid populations now are receiving broad coverage for it ... the majority of the population will go for the insurance-covered benefit," MacDonald said, adding that this could shrink the pool of patients seeking compounded, cash-pay alternatives offered by such companies

Proposed plan is expected to start in April 2026 for Medicaid and in January 2027 for Medicare plans, Washington Post reports, citing documents

As of last close, stock up 173% YTD