The Trump administration has scrapped a Biden-era proposal that would have expanded Medicare coverage to include obesity medications, notably GLP-1 drugs like Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound.
The proposal, which was still under review when President Trump took office, aimed to extend access to weight-loss treatments for Medicare beneficiaries classified as obese—those with a BMI of 30 or higher. Current Medicare policies exclude coverage for weight loss drugs, leaving many patients unable to afford treatments that average around $1,000 per month without insurance.
According to a congressional analysis, Medicare coverage of GLP-1 therapies could have cost the federal government an estimated $35 billion over nine years. While the Centers for Medicare & Medicaid Services noted it may revisit the issue, the coverage pathway is now on hold.
Some patients with diabetes or cardiovascular risk factors may still qualify for these medications under existing Medicare or Medicaid rules.
Following the announcement, shares of Eli Lilly dropped more than 2% in after-hours trading, while Novo Nordisk saw a decline of over 1%. Both companies declined to comment.
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