01:53 PM EDT, 06/12/2024 (MT Newswires) -- Novo Nordisk ( NVO ) and Eli Lilly's ( LLY ) weight-loss drugs will be dropped from coverage after Blue Cross Blue Shield of Michigan has decided to stop covering GLP-1 obesity drugs under its fully insured large group commercial plans starting in January, Bloomberg reported Wednesday, citing the insurer's spokesperson.

Coverage of the drugs was dropped due to their "efficacy, safety and access, and cost," Blue Cross Blue Shield's spokesperson was quoted as saying.

Novo's Wegovy and Lilly's Zepbound are both GLP-1 drugs.

"We are disappointed in this decision from BCBS of Michigan as it is contrary to actions that many throughout our country are taking -- which is to expand coverage for these important medicines," a Novo spokesperson told MT Newswires in an email.

Neither Lilly nor Blue Cross Blue Shield immediately responded to MT Newswires' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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