Medicare’s $50 weight loss pill could cost taxpayers billions of dollars

Bob covers medical expenses, focusing on health insurance and hospitals. His story delves into Medicare Advantage, opaque prescription drug benefits, and what executives actually earn. He is also the author of the Health Care Inc. newsletter. You can reach Bob at Signal at bobjherman.09.

Medicare is advertising that adults 65 and older can receive Wegovy and Zepbound for $50 a month starting in July, especially for weight loss. But the agency has yet to say how much this will cost taxpayers, who are largely responsible for the burden.

There’s a lot at stake for the public and Medicare beneficiaries. Temporary coverage of obesity drugs that circumvents federal law will result in millions of new patients and billions of dollars in revenue for drug makers Eli Lilly and Novo Nordisk.

Medicare’s “GLP-1 Bridge” program begins July 1 and runs through December 31, 2027. The Trump administration initially planned to test coverage of obesity drugs through Medicare Advantage and prescription drug plans, but the health insurance companies that run those plans balked at the potentially high costs. Instead, drugs are covered only by taxpayers and the beneficiaries who fill the prescriptions.

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