Medicare’s $50 weight loss drugs could cost taxpayers billions

Bob covers the money in health care, focusing on health insurance and hospitals. His stories delve into Medicare Advantage, opaque prescription drug benefits, and how much executives actually make. He is also the author of the Health Care Inc. newsletter. You can reach Bob on Signal at bobjherman.09.

Medicare is promoting that individuals aged 65 and over will be able to access Wegovy and Zepbound, specifically for weight management, beginning in July at a cost of $50 per month. However, the agency has yet to disclose the financial impact on taxpayers, who will bear the majority of the expense.

Significant implications loom for the public and Medicare recipients. The provisional coverage of obesity treatments, which circumvents federal regulations, is expected to introduce millions of new users and generate billions in profits for the drug manufacturers, Eli Lilly and Novo Nordisk.

The “GLP-1 Bridge” initiative by Medicare will commence on July 1 and continue until December 31, 2027. Initially, the Trump administration intended to evaluate the coverage of obesity medications through Medicare Advantage and prescription drug plans. However, the insurers managing these plans opposed the potentially high costs. Consequently, the funding will be entirely sourced from taxpayers and the beneficiaries who obtain the prescriptions.

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