Biden wants Medicare, Medicaid to cover anti-obesity drugs

The Biden administration proposed a new rule on Tuesday that would cover popular and expensive weight loss drugs like Ozempic and Wegovy under Medicare and Medicaid, benefitting an estimated 7 million-plus Americans.

The proposal aims to reduce the $1,000 monthly cost of these drugs for patients. It seeks to classify obesity as a treatable disease, overturning a long-standing Medicare restriction on weight loss drug coverage. Currently, weight-loss drugs are not covered under Medicare unless it is mentioned as a treatment for health conditions like diabetes.

The proposal could cut out-of-pocket expenses for some drugs by as much as 95%.

However, the US Department of Health and Human Services (HHS) proposal would cost taxpayers up to $35 billion over the next decade.

It also faces political hurdles. Critics like Robert F. Kennedy Jr., Trump’s pick to lead HHS next year, have often opposed these drugs. He advocates for government spending on healthier foods and gym memberships for US citizens.

Supporters argue that weight loss drugs could lower long-term healthcare costs by preventing obesity-related illnesses. Skepticism remains over the drugs’ high prices and their potential strain on the US healthcare system.

The new rule faces a 60-day public commentary period, and the new Trump administration will determine its fate in January.