Module C: the coverage study

Exploration notebook, module C: existing outputs only, no new analysis

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Coverage was associated with an estimated 12.2 additional prescriptions per 1,000 enrollees per quarter (95% CI 8.4 to 16.0), comparing covering with never-covering states.

Coverage and timing

State Delivery system Prior authorization BMI threshold Step therapy
Mississippi FFS Y >=30; BMI 27-29.9 with >=1 weight-related comorbidity none stated in the criteria; only one anti-obesity agent co…
North Carolina FFS Y >=30; BMI >=27 with >=1 weight-related comorbidity Y for non-preferred agents: trial of a preferred agent (or …
Pennsylvania FFS Y >=30 (adults) Y for non-preferred obesity agents: history of therapeutic …
Michigan FFS Y GLP-1 weight-loss agents: BMI classified as morbidly obese … Y (10/01/2026 criteria): GLP-1s are non-preferred; trial an…
Rhode Island FFS Y for some products (EOHHS memo: 'some medications may requ… not found in sourced documents not found in sourced documents
Massachusetts FFS Y >=30; or >=27 with a listed weight-related comorbidity Y: inadequate response to, adverse reaction to, or contrain…
South Carolina MCO (managed care program); FFS not stated Y >=30; BMI 30-34 needs >=1 very high-risk factor or >=2 othe… not found in sourced documents
California FFS not found in sourced documents for the covered period (Zepb… not found in sourced documents (the 2026 FAQ says no BMI ra… not found in sourced documents
New Hampshire FFS Y (the PDL notes additional prior approval for the weight m… not found in sourced documents Y: trial and failure of 2 preferred products (orlistat, phe…
Utah FFS Y >=30 (adults) not found in sourced documents
Minnesota FFS Y >=30 with no risk factors (age 18+) none stated; documentation of a reduced-calorie diet or die…
Wisconsin FFS Y >=30 (age 18+) none stated; the member must have participated in a weight …
Virginia FFS Y (service authorization) 2022 form: >=30 (>=27 with two or more risk factors); form … Y (form effective 2026-07-01): tried and failed one non-GLP…
Kansas FFS Y >=30 (adults); 'high-cost' agents (Table 4, includes Saxend… Y: the preferred PDL drug is required unless the patient me…
Delaware FFS Y (the 2026 PDL: all obesity treatment agents require prior… not found in sourced documents Y: two preferred products are required before a non-preferr…
Missouri FFS Y (may be transparent: a billable ICD-10 obesity code on th… >=30 (adults) Y: preferred agents (Zepbound, Foundayo) first; Wegovy is n…
Tennessee FFS Y (interim PA criteria from 2025-08-01; Wegovy and Zepbound… >=30 (adults) none for the preferred agents (Wegovy, Zepbound); Y for non…

Tile-grid map of the 50 states and DC. Ten states are colored by the year Medicaid coverage of Wegovy and Zepbound began, from 2021 (Kansas) to 2025 (Tennessee); seven states have white tiles with dashed orange outlines because their start quarter is uncertain; the other 34 are gray. Arrows mark five states whose coverage later ended or lapsed.

Coverage timing map

Estimates

estimate_type att se ci_low ci_high method fmi
Overall ATT (simple aggregation), Callaway-Sant'Anna 12.189 1.947 8.374 16.004 did multiplier bootstrap, state clusters, 999 draws; Rubin'… 0
Overall ATT (group aggregation: average of cohort ATTs), Ca… 11.376 2.366 6.738 16.013 same 0
TWFE Sun-Abraham post-period average 9.331 0.561 8.233 10.430 fixest, state-clustered; Rubin's rules over 20 imputations 0
TWFE Sun-Abraham post-period average, wild cluster bootstrap 9.331 NA 4.507 14.155 fwildclusterboot, Webb weights, 9,999 draws, by state; mean… NA
Placebo in time: coverage 4 quarters earlier (post-launch w… 0.383 0.237 -0.081 0.847 att_gt, never-treated controls, 8 treated states with cohor… 0
Secondary outcome, overall ATT (simple): Saxenda 0.184 0.264 -0.334 0.701 same as the primary 0
Secondary outcome, overall ATT (simple): diabetes GLP-1 (sp… -0.760 1.774 -4.238 2.718 same as the primary 0
event_time att se ci_low ci_high band_low band_high fmi treated_states cohorts fewer_than_3_states
-8 -0.6794989 0.3934617 -1.4506698 0.0916719 -7.7112701 6.3522722 0.0000269 6 6 FALSE
-7 -0.5258108 0.3152378 -1.1436656 0.0920439 -6.1595993 5.1079776 0.0000357 8 7 FALSE
-6 -0.5167052 0.3008585 -1.1063769 0.0729666 -5.8935121 4.8601018 0.0000267 8 7 FALSE
-5 -0.4667323 0.2821808 -1.0197965 0.0863318 -5.5097400 4.5762753 0.0000215 8 7 FALSE
-4 -0.3828385 0.2868193 -0.9449940 0.1793170 -5.5087438 4.7430668 0.0000470 8 7 FALSE
-3 -0.0266327 0.0337458 -0.0927732 0.0395078 -0.6297216 0.5764563 0.0027340 9 8 FALSE
-2 0.0417251 0.0546460 -0.0653791 0.1488293 -0.9348836 1.0183338 0.0011668 9 8 FALSE
-1 0.0000000 NA NA NA NA NA NA 10 9 FALSE
0 1.2558250 0.4094215 0.4533736 2.0582763 -6.0611714 8.5728213 0.0000273 10 9 FALSE
1 3.7214361 1.4308087 0.9171026 6.5257696 -21.8493328 29.2922050 0.0000023 9 8 FALSE
2 6.2637039 2.4538921 1.4541639 11.0732440 -37.5911499 50.1185577 0.0000012 9 8 FALSE
3 8.4905104 3.6709740 1.2955337 15.6854871 -57.1154831 74.0965039 0.0000004 9 8 FALSE
estimator estimate se ci_low ci_high
(a) Callaway-Sant'Anna simple aggregation, all post cells 12.189 1.947 8.374 16.004
(b) CS dynamic, mean of e = 0..12, equal weights 13.715 2.865 8.099 19.331
(c) CS dynamic, mean of e = 0..12, Sun-Abraham cell weights… 11.076 2.459 6.257 15.895
(c2) CS group-time estimates, e = 0..12, weighted like the … 11.076 NA NA NA
(d) TWFE Sun-Abraham post-period average 9.331 0.561 8.233 10.430

Event-study plot of the estimated effect of coverage on Wegovy and Zepbound prescriptions per 1,000 enrollees by quarter since coverage began. Pre-coverage estimates are near zero; the effect is 1.3 at the start, 11.7 after four quarters and 17.2 after eight, with pointwise 95 percent bands widening later; event times 11 and 12 have fewer than three states and are grayed.

Event study

Forest plot of the overall effect estimate and 95 percent interval for the primary run, 12.2, and 15 sensitivity analyses ranging from 10.1 to 14.7; all intervals are above zero. The fee-for-service-only specification is not shown because it is not reliably estimable.

Specification chart

Line chart of the robust 95 percent confidence interval for the average effect over the first four quarters as the allowed violation of parallel trends (Mbar) rises from 0 to 2. The interval excludes zero until Mbar is about 1.4 (the breakdown value).

HonestDiD

Withdrawals (preliminary)

unit group obesity_wz all_drugs normalised
CA Withdrawing / lapsed -0.7573 -0.2604 -0.6718
PA Withdrawing / lapsed -0.9551 -0.5100 -0.9083
SC Withdrawing / lapsed -0.6173 0.0118 -0.6218
NC Withdrawing / lapsed 3.8707 -0.0016 3.8785
NH Withdrawing / lapsed -0.8822 -0.1915 -0.8543
KS Continuously covered -0.3775 -0.5257 0.3126
MI Continuously covered -0.2674 -0.0273 -0.2468
MS Continuously covered 0.0572 -0.2798 0.4679

Top: obesity prescriptions per 1,000 enrollees for California, Pennsylvania, South Carolina, North Carolina and New Hampshire around the end of coverage, against continuously covered and never-treated states. Bottom: each state's normalized change from 2025 Q4 to 2026 Q1; California is -67.2 percent and Pennsylvania -90.8 percent, against positive changes in most continuously covered states. Preliminary, descriptive.

Coverage withdrawals

Part of the project report; every number comes from analysis/outputs/key_numbers.csv. Public aggregate data; no company affiliation or endorsement.