(The Center Square) — President Joe Biden’s plan to authorize Medicare and Medicaid cover anti-obesity medications starting in 2026 would $140 billion over the next decade.
That’s according to latest figures from the Penn Wharton Budget Model, a nonpartisan research group that provides cost estimates of public policy proposals.
Biden’s new proposal would significantly expand access to anti-obesity drugs such as Ozempic and Wegovy. Without insurance coverage, the drugs can cost as much as $1,000 a month.
Lawmakers previously prohibited Medicare from paying for weight loss drugs unless those drugs are used to treat diabetes or manage heart disease risks.
Biden’s proposal would expand access to medications for obesity. The White House said it would help an estimated 3.4 million Americans with Medicare and about 4 million adult Medicaid enrollees.
Coverage would come at a cost, according to the Penn Wharton Budget Model.
“PWBM estimates that the proposed rule change would increase Medicare outlays by $55.5 billion over the 10-year budget window and Medicaid outlays by $84.2 over the same period,” the group estimated.
The proposal requires a 60-day public comment period before it can go into effect, meaning it would be up to the incoming Trump administration to complete it.
Medicare provides federal health insurance for people 65 or older, and some people younger than 65 with certain disabilities or conditions. Medicaid is a joint federal and state program that helps cover medical costs for some low-income people.