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Trump drops Biden’s proposal for Medicare to cover obesity drugs like Wegovy and Zepbound

Posted on April 4, 2025 By Admin No Comments on Trump drops Biden’s proposal for Medicare to cover obesity drugs like Wegovy and Zepbound


A combination image shows an injection pen of Zepbound, Eli Lilly’s weight loss drug, and boxes of Wegovy, made by Novo Nordisk. 

Reuters

President Donald Trump on Friday dropped a Biden administration proposal to have Medicare cover obesity drugs, including popular but costly GLP-1 treatments such as Novo Nordisk‘s Wegovy and Eli Lilly‘s Zepbound.

But the Centers for Medicare and Medicaid Services said it may reconsider coverage of those drugs in the future, according to a fact sheet on the rule.

The proposal would have given millions more Americans access to those drugs, but would have cost the government billions. Many health plans, including Medicare, don’t currently cover weight loss treatments, and some patients simply can’t afford their hefty price tags before insurance.

Wegovy and Zepbound both cost roughly $1,000 before insurance and other rebates. Allowing Medicare to cover those drugs and other weight loss medications could cost $35 billion over nine years, a congressional analysis found.

Under the Biden administration’s proposal, only those who are considered obese — someone who has a body mass index of 30 or higher — would qualify for coverage. Some people may already get coverage of the drugs through Medicare or Medicaid if they have diabetes or are at risk for stroke or heart disease.

The rule wasn’t finalized before Trump took office.

Novo Nordisk and Eli Lilly did not immediately respond to requests for comment.

Shares of Lilly fell more than 2% in extended trading, while Novo Nordisk’s stock dropped more than 1%.



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Health Tags:Biotech and Pharmaceuticals, Biotechnology, Breaking News: Business, Business, business news, Donald J. Trump, Donald Trump, Health care industry, LILLY DRN, Novo Nordisk A/S, Pharmaceuticals, Social issues

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