Medicare’s $50 weight loss drugs could cost taxpayers billions

Bob covers the money in health care, focusing on health insurance and hospitals. His stories delve into Medicare Advantage, opaque prescription drug benefits, and how much executives actually make. He is also the author of the Health Care Inc. newsletter. You can reach Bob on Signal at bobjherman.09.

Medicare is advertising that adults 65 and older can get Wegovy and Zepbound, specifically for weight loss, starting in July for $50 a month. But the agency still is not sharing how much this will cost taxpayers, who will foot most of the bill.

There is a lot at stake for the public and Medicare beneficiaries. The temporary coverage of obesity medications, which sidesteps federal law, will unleash millions of new patients and billions of dollars in revenue for the drugs’ manufacturers, Eli Lilly and Novo Nordisk.

Medicare’s “GLP-1 Bridge” program starts July 1 and runs through Dec. 31, 2027. The Trump administration initially planned on testing coverage of the obesity drugs through Medicare Advantage and prescription drug plans, but the health insurers that run those plans balked at the high potential costs. Instead, the drugs will be covered solely by taxpayers and the beneficiaries who fill prescriptions.