Key Takeaways:
- 5-Year Pilot Program: Starting as early as 2026, Medicaid and Medicare may opt to cover GLP-1 weight-loss drugs like Ozempic and Wegovy, expanding access beyond diabetes-related conditions.
- Big Costs, Big Market: The drugs run up to $7,000 per year, with analysts projecting the weight-loss drug market could exceed $150 billion by 2030.
- Internal Tensions: While CMS head Mehmet Oz supports the plan, Health Secretary RFK Jr. has raised red flags about high costs and the risk of sidelining healthier lifestyle solutions.
In a bold—and expensive—move, the Trump administration is teeing up a pilot program to allow Medicare and Medicaid to cover blockbuster weight-loss drugs like Ozempic, Wegovy, Mounjaro, and Zepbound for weight management. The goal? Address America’s obesity crisis head-on with modern science—but without pretending there’s no bill coming due.
The Washington Post reports that the five-year pilot would allow states and Medicare Part D plans to opt in to covering GLP-1 drugs, originally designed for diabetes, now repurposed to help melt pounds by suppressing appetite and slowing digestion.
The price tag? Between $5,000 and $7,000 per patient annually. That’s no small chunk of change, especially for government-run insurance programs already bloated with spending.
The idea was first floated by the outgoing Biden administration, but now Team Trump is seriously considering it—with implementation possible as soon as April 2026 for Medicaid and January 2027 for Medicare.
Insurance typically covers these drugs only when tied to related conditions like diabetes or heart disease. The Trump pilot would expand access purely for weight loss, a significant policy shift that could open the floodgates—and the federal wallet.
Drugmakers like Eli Lilly and Novo Nordisk are watching closely. Analysts expect the weight-loss drug market could top $150 billion by 2030. Not surprisingly, Lilly’s stock got a boost after the news broke.
But not everyone in the administration is sold. CMS Director Mehmet Oz reportedly supports the plan, while Health Secretary Robert F. Kennedy Jr. has voiced concerns, criticizing the high cost and warning that pills aren’t a replacement for healthy living.
The free market loves innovation—but fiscal conservatives have questions. Is this smart preventative care or a billion-dollar Band-Aid? Time will tell whether Trump’s approach blends results with responsibility—or becomes another entitlement in disguise.