The Biden administration is making a significant push to expand access to weight loss drugs for millions of Americans. Recognizing that 42% of adult citizens are classified as obese, the government aims to make treatments like Ozempic and Wegovy available through Medicare and Medicaid. These medications are currently limited to individuals with diabetes or heart conditions. Biden's plan seeks to extend coverage to 7.5 million older and low-income individuals, a move that aligns with his broader goal of reducing prescription drug prices in the United States.
Despite these intentions, the future of this initiative hangs in the balance as the administration prepares to transition to Donald Trump's leadership. Trump, set to begin his second term on January 20, has made clear his intent to cut public spending. He has appointed Mehmet Oz to lead the Centers for Medicare and Medicaid Services, with a mandate to curb waste and fraud within the agency.
The proposed policy change could lead to a cost of $35 billion to the federal budget, covering drugs that can help patients lose 15-25% of body weight at around $1,000 per month. However, the Congressional Budget Office suggests that the Treat and Reduce Obesity Act might prove less costly than anticipated. If the federal government adopts coverage for these weight-loss drugs, it could prompt private insurers to follow suit, mirroring the expansion seen with smoking cessation coverage under the Affordable Care Act. With obesity costing the U.S. $173 billion annually, preventative measures could offer long-term economic benefits.
