Trump drops Biden’s proposal for health insurance to cover obesity drugs

President Donald Trump abandoned a Biden administration proposal on Friday for Medicare to cover the obesity of drugs, including popular but expensive GLP-1 treatments such as Novo Nordisk‘s wegovy and Eli Lilly‘S Zepbounde.

But the centers for Medicare and Medicaid Services said that it could reconsider the coverage of these drugs in the future, according to an information sheet on the rule.

The proposal would have given millions of other Americans access to these drugs, but would have cost the government billions. Many health plans, including Medicare, do not currently cover weight loss treatments, and some patients simply cannot afford their heavy price labels before insurance.

Wegovy and Zepbounds both cost about $ 1,000 before insurance and other discounts. Allowing Medicare to cover these drugs and other weight loss drugs could cost $ 35 billion over nine years, revealed an analysis of the congress.

Under the proposal of the Biden administration, only those considered to be obese – someone who has a body mass index of 30 or more – would be eligible for the coverage. Some people can already obtain medication coverage through Medicare or Medicaid if they suffer from diabetes or are at risk of stroke or heart disease.

The rule was not finalized before Trump took up his duties.

Novo Nordisk and Eli Lilly did not immediately respond to requests for comments.

Lilly’s shares have dropped by more than 2% of prolonged exchanges, while the Novo Nordisk stock dropped by more than 1%.