The US government is planning a five-year pilot program to cover the costs of “miracle” weight loss drugs under Medicaid and Medicare, in an effort to tackle America’s chronic obesity problem. The program, set to begin in 2026 and 2027 respectively, would allow state Medicaid programs and Medicare Part D insurance plans to voluntarily cover the cost of Ozempic, Wegovy, Mounjaro, and Zepbound for weight management purposes.
These GLP-1 drugs, originally developed to treat type 2 diabetes, have gained popularity for their ability to reduce body weight by suppressing appetite and slowing digestion. However, their high cost has raised concerns about long-term affordability. The plan would permit coverage of these expensive medications, which can cost between $5,000 and $7,000 a year.
Insurance companies typically only cover these drugs when patients have other conditions tied to obesity, such as diabetes or heart disease. The new proposal would mark a shift in federal policy, after the administration previously stated that programs would not cover weight loss drugs. Analysts expect the weight-loss drug market to bring in over $150 billion in revenue by the next decade.
The plan has sparked division within the administration, with CMS head Mehmet Oz praising these drugs and health secretary Robert F Kennedy Jr criticizing their high cost and lack of a healthy lifestyle substitute. The Centers for Medicare & Medicaid Services have not commented on the proposal.
Source: https://www.theguardian.com/us-news/2025/aug/01/trump-weight-loss-drug-medicare-medicaid