Biden Administration Proposes Covering Obesity Drugs In Medicare And Medicaid

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Biden Administration Proposes Covering Obesity Drugs In Medicare And Medicaid
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Joshua Cohen covers healthcare policy, with a special focus on prescription drug pricing and reimbursement. Cohen writes about a wide variety of topics, including weight loss drugs, the Inflation Reduction Act, and even things like health risks related to climate change.

that the federal government insurance program for the elderly and disabled, Medicare , cover obesity drugs . Coverage of weight loss products in Medicare has been prohibited by law for more than two decades. The proposed new rule issued by the Centers for Medicare and Medicaid Services would rescind the statutory regulation. The administration’s proposal would also expand coverage of obesity medications in Medicaid , the insurance program for people with limited income and resources.

After a 60-day period during which public comments may be issued and subsequently reviewed by CMS, the rule would then have to be finalized by the incoming Trump administration before being implemented in 2026. It is far from certain, however, that the new administration will maintain the rule change or revoke it.

And at the same time, there is the problem of how much the rule change would cost the government, but also impact Medicare beneficiary Part D premiums which would likely go up as payers that contract with Medicare try to offset some of the increased cost burden.CMS estimates that expansion of coverage would cost $25 billion for Medicare and $11 billion for Medicaid over a ten year span. States would have to pay $4 billion for their share of the Medicaid bill.

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