Joe Biden wants to give as much as $35 billion to Big Pharma companies so that weight loss drugs like Ozempic would be covered by Medicare and Medicaid. The Department of Health and Human Services (HHS) announced the move on Tuesday, November 26.
HHS Secretary Xavier Becerra described the proposal as a favorable development for those dealing with obesity. Recent figures from the Centers for Disease Control and Prevention (CDC) indicate that over 40 percent of U.S. adults aged 20 and over are classified as obese, with nearly 74 percent being overweight to some degree.
According to estimates, federal coverage of these medications could impose a financial burden of up to $35 billion over the next ten years.
The proposed policy would apply to individuals with a body mass index of 30 or above. Currently, some patients receive coverage through Medicare or Medicaid if they have diabetes or are at risk for other conditions.
Robert F. Kennedy Jr., who must approve the new rule if confirmed, has previously criticized these weight-loss drugs, suggesting that addressing dietary issues could resolve health challenges like obesity and diabetes.
Novo Nordisk, the producer of these drugs, faces criticism amid reports of various side effects and a rise in emergency room visits linked to the medications.
Following President-elect Donald J. Trump’s announcement of RFK Jr. as HHS head, stocks of Big Pharma companies, particularly ones linked to vaccine production, fell in trading.
RFK Jr. will require Senate confirmation, though senators on the Senate Finance Committee have benefitted from Big Pharma spending to the amount of at least $6.9 million.