Trump Administration Proposes Medicare, Medicaid Pilot for GLP-1 Weight Loss Drugs

The Trump administration plans to launch a five-year pilot program to allow Medicare and Medicaid coverage for GLP-1 weight loss medications such as Wegovy, Ozempic, Zepbound, and Mounjaro. These drugs, currently priced between $5,000 and $7,000 annually, are not covered by Medicare when prescribed solely for obesity, but the pilot would enable Medicare Part D plans and state Medicaid programs to optionally cover them regardless of secondary health conditions. This initiative represents a major policy shift after an earlier similar proposal from the Biden administration was rejected over cost concerns.

The GLP-1 drug market is projected to potentially exceed $150 billion within a decade, highlighting its growing significance. Key figures within the administration show differing views; CMS Director Mehmet Oz supports expanded access, while Health Secretary Robert F. Kennedy Jr. raises concerns about affordability and the emphasis on medication over lifestyle changes. Public health experts note that broader coverage could improve obesity-related health outcomes, but financial impacts on federal and state budgets could be considerable if demand increases dramatically.