Medicare's Weight Loss Drug Coverage Could Cost $35B by 2034

October 17, 2024: The Congressional Budget Office (CBO) has issued a concerning projection regarding the potential financial impact of covering weight loss drugs under the Medicare program. According to the CBO’s analysis, expanding Medicare coverage to include these medications could cost the federal government $35 billion between 2026 and 2034.

The CBO’s estimates are based on the assumption that Medicare would cover anti-obesity medications for all obese beneficiaries and some who are classified as overweight. The agency predicts that 12.5 million Medicare beneficiaries will be eligible for these drugs in 2026 and that the number of eligible beneficiaries will gradually increase over the next decade.

While the CBO acknowledges that weight loss drugs can have significant health benefits, it also notes that the potential costs of covering these medications are substantial. The drugs are often expensive, and the increased demand from Medicare beneficiaries could further drive up prices.

The CBO’s analysis raises important questions about the trade-offs in expanding Medicare coverage. While the drugs may improve beneficiaries’ health, the high costs could strain Medicare’s budget and lead to cuts in other essential services.

The CBO’s findings come at a time of growing interest in the use of weight loss drugs. Recent studies have shown that these medications can be effective in helping people lose weight and improve their overall health. However, the high cost of these drugs has limited their accessibility for many people.

As policymakers consider expanding Medicare coverage to include weight loss drugs, they will need to carefully weigh the potential benefits against the costs. The CBO’s analysis provides valuable information to inform this decision-making process.

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