Medicare Covers Obesity Drugs Starting July 1

Medicare will cover GLP-1 obesity medications for the first time beginning Wednesday, July 1. The change opens access for millions of seniors who previously could not afford the treatments. The change opens a significant new patient pool for Novo Nordisk and Eli Lilly, the two dominant manufacturers in the GLP-1 market.

The expansion carries a major asterisk. A loophole in the Trump administration's pricing deal with Novo Nordisk and Eli Lilly is undermining the cost savings the arrangement was projected to deliver, according to STAT News. The administration had structured a bargain with the drugmakers intended to limit federal spending, but the agreement is not delivering the savings Washington projected. How much the program ultimately costs taxpayers is now an open question.