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The drugs, which can be effective at treating and reversing severe obesity, can cost as much as $1,000 per month without insurance.
The Biden administration proposed a rule on Nov. 26 for Medicare and Medicaid to cover anti-obesity medications that were designed to prevent the development of Type 2 diabetes.
Without prescription insurance coverage, the drugs cost as much as $1,000 per month.
Medicare and Medicaid currently only cover these medications for certain conditions, such as diabetes.
President Joe Biden’s plan would expand access so they are covered for obesity as well, making it available to another 3.4 million Americans with access to Medicare.
The health plan would potentially reduce out-of-pocket expenses for these drugs by as much as 95 percent for certain enrollees. Roughly 4 million adults on Medicaid would also gain access to these medications.
An analysis from the U.S. Department of Health and Human Services (HHS) found that international prices for these anti-obesity drugs are already much lower than list prices found in the United States.
The new rule proposal continues Biden’s efforts to expand access to Medicare, Medicaid, and the Affordable Care Act since he took office in 2021. Through the Inflation Reduction Act, the president gained the ability to negotiate down the price of certain drugs covered by Medicare, including $35 monthly caps on insulin.
HHS also reached an agreement with drug manufacturers of 10 key medications earlier this year, lowering prices between 38 percent and 79 percent starting in 2026.