Medicare Drug Plans May Soon Add Anti-Obesity Coverage

News November 26, 2024 at 03:03 PM
Share & Print

What You Need To Know

  • Medicare plans now cover anti-obesity medications only when a patient suffers from a weight-related chronic disease.
  • Medicare program managers say that obesity is a serious chronic disease in its own right.
  • Adding coverage for anti-obesity drugs could add $24.8 billion to the $1.8 trillion 10-year Medicare drug plan spending total, officials estimate.
eb/3e/6c794d8e460b9f25a9c3f354d8d6/2024-weight-scale-adobe-stock-640x640-new-africa.jpg

The agency that oversees Medicare Part D prescription drug plans says it wants the plans to treat obesity as a disease, not as a cosmetic problem.

Today, Medicare drug plans cover anti-obesity medications only when patients need to lose weight to fight diabetes, heart disease or other weight-related conditions.

Instead, the plans should handle use of anti-obesity medications by patients who are already obese the same way they handle drugs for other chronic conditions, officials at the Centers for Medicare and Medicaid Services say in a new set of proposed requirements for the private plans that health insurers will offer Medicare enrollees in 2026.

When Medicare drug plan managers are developing their "formularies," or lists of covered drugs, they should consider GLP-1 agonist drugs and other anti-obesity medications using the same criteria they would use to evaluate the safety and effectiveness of other drugs in the formularies, CMS officials write.

What it means: The plan proposal could create an addition to Medicare benefits for clients with Medicare coverage who are now paying $1,000 or more per month for hot drugs like Wegovy and Saxenda.

Researchers have suggested that GLP-1 agonists and related drugs could also help treat conditions such as cancer, heart disease, Alzheimer's and even Parkinson's disease, both by reducing people's weight and by reducing inflammation.

If those researchers' arguments are correct, widespread use of the new generation of anti-obesity medications could increase many clients' life expectancy and increase the need for them to prepare to possibly live past age 95.

Proposal details: CMS officials have concluded that obesity is a chronic disease but are not classifying being overweight as a disease in its own right.

Medicare drug plans should cover anti-obesity medications for overweight patients who need to lose weight to fight conditions such as diabetes, but they need not cover the medications for overweight patients who simply want to lose weight, officials say.

CMS officials predict that requiring Medicare drug plans to treat obesity as a chronic disease would add $24.8 billion in federal spending over 10 years. The government will spend about $115 billion on Medicare drug plans this year and may spend about $1.8 trillion on Medicare drug plans over the 10-year period running from 2025 through 2034, according to the Congressional Budget Office.

The proposed regulations are set to appear in the Federal Register, an official government regulatory publication, on Dec. 10. Comments will be due Jan. 27.

The proposal packet includes many other provisions, including requirements for use of artificial intelligence systems in Medicare plan underwriting decisions and rules regarding what insurance agents selling Medicare Advantage plans should tell consumers about access to Medicare supplement insurance policies.

President-elect Donald Trump's pick to head the U.S. Department of Health and Human Services, Robert F. Kennedy Jr., appears to be skeptical about the role of drugs in weight loss. Trump's nominee to head CMS, Dr. Mehmet Oz, is a cardiothoracic surgeon who has posted positively on the social media service X about research suggesting that drugs like Wegovy, a popular GLP-1 agonist, might help people suffering from heart disease.

Credit: New Africa/Adobe Stock

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Related Stories

Resource Center