Federal Shift: Medicare and Medicaid May Cover Costly Weight-Loss Drugs

The Trump administration is considering implementing a five-year pilot program aimed at covering certain weight-loss drugs under Medicare and Medicaid, according to a report from the Washington Post. This initiative would mark a significant shift in policy following the rejection of a similar proposal earlier this year.

The proposal outlines plans for government insurance programs to cover drugs such as Novo Nordisk's Wegovy and Ozempic and Eli Lilly's Zepbound and Mounjaro. These medications, which have been shown to reduce body weight by 15% to 20% in clinical trials, currently raise questions about cost-effectiveness given their annual costs ranging between $5,000 to $7,000 per patient.

While a spokesperson from Novo Nordisk declined to comment directly on the pilot program, they emphasized the necessity of comprehensive coverage through government and commercial insurance plans. Despite the potential coverage expansion, analysts warn that broader public coverage of branded drugs could impact demand for compounded alternatives currently in the market.

(With inputs from agencies.)