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Biden Administration Proposes Expanding Obesity Drug Coverage Awards


Medicare and Medicaid could soon cover the cost of some weight-loss drugs (The Hill).  
 
What’s going on: The Biden administration last week proposed a rule “that would allow anti-obesity drugs like Wegovy and Zepbound to be covered under Medicaid and Medicare for more Americans.” 

  • If finalized, the rule would take effect in 2026.
  • Medicare and Medicaid currently cover medications in the new GLP-1 drug class—such as Novo Nordisk’s Ozempic and Eli Lilly’s Zepbound—but only for non-obesity indications, including diabetes and heart disease.
  • Under the proposed policy, “older and/or low-income Americans with a body mass index of 30 or higher would qualify for coverage for the drugs,” even in the absence of other health conditions.  

Why it’s important: “Millions of Americans are diagnosed with obesity, which is considered a chronic disease that can lead to serious health consequences like cardiovascular disease, stroke and diabetes. One recent study found three-quarters of U.S. adults are overweight or obese.”  

  • More large employers are covering the drugs—at their own expense—for workers, according to a recent survey.
  • Obesity and excess body weight cost employers tens of billions of dollars a year, according to a recent NAM report. One manufacturing company even told the NAM that “losing weight is the biggest cost saver we have.”  

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