Trump Axes Biden Plan to Fund Obesity Drugs Through Medicare, Medicaid

President Trump has halted a Biden-era proposal that would have forced Medicare and Medicaid to cover costly obesity drugs like Wegovy and Zepbound, a move that could have cost taxpayers billions. This decision, announced today by the Centers for Medicare and Medicaid Services, scraps a plan that aimed to expand access to these popular treatments for millions of Americans struggling with obesity.

The Biden proposal sought to redefine obesity as a treatable disease. It would have reversed decades-old rules barring Medicare from funding weight-loss drugs.

Drugs like Wegovy and Zepbound, which cost around $1,000 monthly, have soared in popularity. They help patients shed up to 25% of their body weight, fueling demand nationwide.

Under Biden’s plan, an estimated 3.4 million Medicare users could have qualified. Another 4 million Medicaid enrollees were also slated to gain coverage for these pricey injections.

Trump’s team argued the plan’s $35 billion price tag over nine years was unjustifiable. They pointed to fiscal responsibility as a key reason for rejecting it outright.

Robert F. Kennedy Jr., Trump’s Health and Human Services pick, has long opposed such coverage. He favors funding healthy food and gym access over what he calls “pharma handouts.”

Some conservatives hailed the decision as a win for taxpayers. They claim it avoids saddling future generations with debt for drugs they see as overhyped and overpriced.

Critics, including drugmakers like Novo Nordisk and Eli Lilly, expressed dismay. They argue obesity’s toll on health justifies government support for these proven treatments.

Medicare already covers these drugs for diabetes or heart risk patients. However, expanding to obesity alone was seen as a budget breaker by the new administration.

Experts say the move could widen health disparities. Lower-income Americans, reliant on public programs, may now miss out on life-changing obesity care.

The Centers for Medicare and Medicaid Services left the door open for future reconsideration. For now, though, the focus remains on cutting costs over expanding drug access.

Drug company stocks dipped after the announcement. Novo Nordisk fell 1.4% and Eli Lilly dropped 3.1% in aftermarket trading, reflecting investor unease.