Biden Administration Plans to Expand Access to Weight-Loss Drugs for Millions of Americans

The Biden administration is proposing a rule that would require the US government to cover weight-loss drugs, potentially expanding access for millions of Americans with obesity and creating a huge new medical bill for President-elect Donald Trump. This move could have significant implications for healthcare policy and access to treatment for individuals struggling with obesity.

The Medicare insurance program currently pays for drugs like Novo Nordisk A/S’s Ozempic and Eli Lilly & Co.’s Mounjaro for people with health conditions such as diabetes. The proposed rule would provide an estimated 3.4 million older Americans on Medicare and four million more adults in Medicaid programs access to weight-loss treatment, significantly reducing out-of-pocket costs.

Drugmakers, including Novo and Lilly, stand to benefit from this proposal as they have been advocating for wider access to their weight-loss medications. Novo shares rose following the announcement, reflecting the positive market sentiment towards this development.

While the move signals progress towards addressing the growing obesity epidemic in the US, it also poses challenges for the Trump administration's focus on reducing government spending. The proposed rule faces a formal rulemaking process and is expected to generate discussions on the impact of healthcare costs and access to essential treatments.

Industry watchers and analysts anticipate significant changes in the healthcare landscape as the proposal progresses, with potential implications on drug pricing and government negotiations. This development underscores the evolving priorities in healthcare policy and the ongoing efforts to improve access to innovative treatments for chronic conditions.