The Biden administration has proposed a rule that could lower the price of weight-loss medications and change the way millions of Americans access the drugs.
The proposal from the U.S. Department of Health and Human Services could see anti-obesity drugs like Wegovy and Ozempic covered by Medicare and Medicaid. The drugs can help people lose 15% to 25% of their body weight.
The proposal also aims to lower out-of-pocket costs for weight-loss drugs, which can cost $1,000 or more for a monthly supply, by up to 95%.
Currently, a decades-old law prevents the government-backed insurance program from covering weight-loss products. However, the Centers for Medicare and Medicaid Services says a change is warranted given "the prevailing medical consensus" that obesity is a disease that can be treated with the help of drugs.
"CMS is proposing to reinterpret the statute to no longer exclude anti-obesity medications for the treatment of obesity from coverage under Medicare Part D and to require Medicaid programs to cover these medications when used to treat obesity," HHS said in an announcement.
If passed, the effort would make it easier for millions of obese Americans to access injectables and other weight-loss drugs. It would also cost taxpayers "as much as $35 billion over the next decade" to fund, according to a report by The Associated Press.
"It's a good day for anyone who suffers from obesity," HHS Secretary Xavier Becerra told the AP. "It's a game changer for Americans who can't afford these drugs otherwise."
Becerra estimated that roughly 7.5 million people could qualify for coverage of the drugs under the new rule. However, the AP noted that roughly 28 million people on Medicaid are considered obese, meaning even more could potentially qualify.
Obesity is defined as having a body mass index (BMI) of 30.0 or higher.
The rule requires a 60-day public comment period and would not be finalized until January. It also faces the potential of getting blocked by President-elect Donald Trump's nominee to lead the HHS, Robert F. Kennedy Jr., who is an outspoken opponent of the weight-loss drugs, the AP noted.
Shares of Novo Nordisk, the maker of Wegovy and Ozempic, rose 1.3% following the announcement.