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