California Legislature Passes Several Healthcare Bills as Session Concludes
California's legislature concluded its August 31 session by enrolling multiple healthcare bills addressing AI in clinical care, prior authorization practices, and coverage expansion. Key legislation includes AB 1979 requiring professional judgment for AI clinical decisions, AB 1887 mandating 30-day prior authorization for rare disease drugs effective January 1, 2027, and SB 1089 expanding GLP-1 medication access through the state's CALRx purchasing program.
State Health Policy Action We’re Watching in June 2026
Five states enacted significant healthcare legislation during spring 2026 sessions. Arizona launched AI-powered Medicaid fraud detection, while Iowa banned insurers from using AI to deny prior authorizations under HF 2635. Missouri's comprehensive HB 2372 awaits gubernatorial approval, expanding Medicaid coverage and hospital transparency requirements. Maryland's Prescription Drug Affordability Board capped Ozempic payments at Medicare rates for state plans. Connecticut's budget bill (SB 1) overhauled Certificate of Need requirements for hospitals.
Does Medicaid Cover GLP-1 Drugs? A State-by-State Guide (2026 Update)
Only 13 state Medicaid programs cover GLP-1 medications for weight loss as of early 2026, down from 17 states before January 1. California, New Hampshire, Pennsylvania, and South Carolina dropped coverage citing budgetary constraints. The 13 remaining states impose strict restrictions including BMI thresholds over 30, prior authorization, and step therapy requirements. CMS introduced the BALANCE demonstration program allowing states to expand coverage through negotiated pricing beginning May 2026.
GLP-1 Weight Loss Drugs: Coverage Under Medicaid and Other Health Plans
Recognizing the potential long-term benefits for enrollees’ cost of coverage, a number of state Medicaid and employee health plans initiated coverage of GLP-1s for weight loss purposes. Only Arkansas, California, Maryland, New Mexico, Pennsylvania, and Texas have introduced legislation mandating coverage in 2025 to date.