The Trump administration had planned to offer affordable weight loss drugs to seniors through a Medicare pilot program, but insurers declined to participate. As a result, the government will now cover these drugs outside the Medicare Part D drug benefit, STAT reports.
Last year, the Trump administration negotiated a deal with Eli Lilly and Novo Nordisk to reduce the prices of their obesity drugs in exchange for expanded access in Medicare and Medicaid. The pilot program, called BALANCE, required insurers to agree to participate, even though it would likely have imposed financial strain. The drugmakers agreed to sell the treatments for $245 per month in Medicare and Medicaid, while Medicare promised beneficiaries would pay only $50 each month. The pilot could only proceed if Medicare Part D drug plans covering at least 80% of enrollees agreed to participate.
Amazon is launching a program through its One Medical primary care arm to provide access to GLP-1 treatments. The program emphasizes ongoing medical supervision, allowing clinicians to monitor progress, adjust treatments, and address related health conditions, unlike one-off weight-management solutions from other providers.
Customers can obtain Novo Nordisk’s Wegovy and Eli Lilly’s Mounjaro weight loss pills starting at $25 per month with insurance coverage, or $149 per month for cash-pay options. The cash-pay price for a starter dose aligns with those offered by programs from Hims & Hers Health, Walgreens, and Weight Watchers.
The announcement impacted several companies in the weight loss market. Shares of Hims & Hers closed down 4% at $29.76 on Tuesday, Weight Watchers declined 8.8%, and Novo Nordisk fell 2.6%.
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