Biden Proposes Medicare Coverage for Wegovy, Ozempic, Reducing Costs for Millions

Nov 26, 2024, 11:18 AM

Announced Tuesday morning, the Biden administration has proposed expanding Medicare and Medicaid to cover weight-loss drugs for obesity, such as Novo Nordisk's Wegovy and Ozempic, and Eli Lilly's Mounjaro and ZepBound. This rule change would recognize obesity as a disease that can be treated with medication, potentially expanding access to these costly treatments for an estimated 7.4 million Americans enrolled in Medicare and Medicaid. Currently, Medicare is prohibited from covering anti-obesity medications due to legislation enacted 21 years ago. The proposal could lower out-of-pocket expenses for some patients by up to 95%. According to a recent Congressional Budget Office analysis, expanding Medicare coverage for these drugs could cost $35 billion over nine years. The proposal would need to be finalized, possibly by the next administration, to take effect.