Overview

• The Centers for Medicare and Medicaid Services (CMS) confirmed it will not expand coverage for anti-obesity drugs like Wegovy and Zepbound under Medicare and Medicaid.
• The decision follows a Biden Administration proposal to include these medications, which are proven to reverse obesity and reduce related health risks.
• Research suggests covering these drugs could yield a 13% annual social return on investment and save the U.S. healthcare system billions in obesity-related costs.
• Pharmaceutical companies Novo Nordisk and Eli Lilly expressed disappointment and urged policymakers to reconsider, citing the drugs' potential to improve public health.
• Critics point to the high cost of the medications, though experts predict increased competition and future generics will drive prices down, maintaining cost-effectiveness.