The collage shows the Zepbound injection pen, Eli Lilly's weight loss drug, and Wegovy boxes, made by Novo Nordisk.
Reuters
A version of this article first appeared in CNBC's Healthy Returns newsletter, which delivers the latest health care news directly to your inbox. Subscribe here to receive future issues.
Good evening and happy Tuesday! Not surprisingly, expanding Medicare coverage for expensive weight-loss drugs could come at a high cost to the federal government.
Allowing Medicare to cover obesity drugs would increase federal spending by about $35 billion from 2026 to 2034, according to an analysis released last week by the US Congressional Budget Office.
Federal costs to cover these drugs will grow from $1.6 billion in 2026 to $7.1 billion in 2034, the Congressional Budget Office said.
All of this analysis is hypothetical, and comes as drugmakers and advocacy groups pressure the government to expand coverage of — and give more seniors access to — hugely popular treatments. These include GLP-1s for obesity such as Novo NordiskWegovy and Eli Lillys Zepbound, both of which carry hefty prices of around $1,000 per month before insurance and other rebates.
Currently, Medicare only covers weight loss treatments if they are approved and prescribed for another health condition. For example, Medicare covers Wegovy to reduce the risk of serious cardiovascular complications in people with heart disease and obesity, but it does not cover the weight loss drug.
The Congressional Budget Office projects that savings from improved health among patients — mainly by reducing the incidence of obesity-related conditions —
It will grow over time. However, she says these savings could be relatively small, totaling less than $50 million in 2026 and about $1 billion in 2034.
“Although the net federal savings per user are expected to be larger in the long run, they will still be less than the cost of drugs,” the Congressional Budget Office said in the report.
The cost of drugs could also decline over time, according to the Congressional Budget Office.
Here's why: You expect generic versions of popular weight-loss injections to enter the market and lower prices. The Congressional Budget Office also expects average net prices for obesity drugs to decline in 2027 due to Medicare drug price negotiations with manufacturers.
Semaglutide, the active ingredient in Wegovy and Novo Nordisk's diabetes drug Ozempic, could be among 15 drugs selected for the next round of pricing talks, which will begin in 2025 and take effect in 2027.
But how might Medicare's coverage of these treatments affect access?
If Medicare covered these drugs, more than 12.5 million beneficiaries would be newly eligible for weight-loss drugs starting in 2026, according to the Congressional Budget Office. About 2% of these patients are expected to use the treatments in the first year, the analysis said.
More than two-thirds of Medicare beneficiaries are
They are classified as either obese or overweight, according to their condition
The Congressional Budget Office said B.M.I.
It's worth noting that spending may look a little different after 2034.
The Congressional Budget Office said Medicare spending on weight-loss drugs would likely be lower on a per-user basis because of lower costs associated with the drugs and increased savings. But Medicare coverage of those treatments would still increase net federal costs from 2034 to 2044, the Congressional Budget Office noted.
A Novo Nordisk spokesperson said in a statement Tuesday that the medical and societal costs of obesity are “significant,” with some estimates exceeding $1.7 trillion annually in the United States.
“We know that treating obesity is associated with better medical outcomes, even if bureaucrats haven't figured out how to calculate these savings,” the spokesman said, adding that the company hopes Medicare will begin offering coverage for weight-loss drugs.
Eli Lilly did not immediately respond to CNBC's request for comment.
Feel free to send any tips, suggestions, story ideas and data to Annika at annikakim.constantino@nbcuni.com.
Latest healthcare technology: CNBC tests Abbott's Lingo continuous glucose monitor
Stacy Wescott | Chicago Tribune | Tribune News Service | Getty Images
The test has been done Abbott LaboratoriesConsumer-friendly continuous glucose monitors have been around for the past few weeks, and they're a great new tool for people who want an in-depth look at how their metabolism is working.
Called Lingo, the device is a small sensor that penetrates the skin to measure glucose levels in real time. It is very convenient and easy to use. I wear one on the back of my right arm, and forget it's there most of the time.
I've tried continuous glucose monitors before, but this was my first time testing one from Abbott. The company launched Lingo in September, after rival Dexcom announced its own consumer-facing display called Stelo in late August. I reviewed Stelo for CNBC prior to this launch.
There are a lot of similarities between Lingo and Stelo, but Abbott's app provides a more comprehensive look at glucose data over time than Dexcom's app. If you're interested in exploring your metabolism on a more detailed level, the Abbott System is probably the best product for you.
Glucose is a sugar molecule that comes from food, and is our body's primary energy source. Everyone's glucose levels are different, but people can develop serious health problems such as metabolic disease, insulin resistance and heart disease if their levels are consistently high. Lingo aims to help educate users about their habits and teach them how to manage glucose in healthy ways, according to Abbott.
Historically, continuous glucose monitors have been prescribed for patients with diabetes, but Lingo is for adults like me who don't have the disease. It's available over-the-counter, so you can pay out of pocket and buy one sensor online for $49, two sensors for $89, or six sensors for $249.
Dexcom's Stelo is also available over-the-counter, and an ongoing subscription for two sensors costs $89 per month. Stelo sensors last up to 15 days before they need to be replaced, and Lingo sensors last up to 14 days.
Once your Lingo sensors arrive, it will be very easy to start using them. I downloaded the Lingo app, entered some basic biological information and prepared to apply the sensor to my arm. The app walks you through each step, and it's easy to follow.
I started by assembling my applicator, which is the tool that inserts the sensor into the upper arm. There is a needle in the applicator, but there is a flexible thread at the end under the skin below the sensor itself.
I'm not usually nervous about needles, but I had to push myself a little to apply Lingo. You have to place the applicator firmly on the back of your arm, so it was a little scary having to do it myself. To apply Stelo using the Dexcom application tool, I just had to click a button.
Eventually, I gained the courage to step on my sensor, and there was nothing to worry about. I felt some pain, but it subsided after about 10 minutes. When the 14 day period was up and it was time to replace the sensor, I felt much more comfortable the second time around.
Lingo is really easy to wear. I don't notice the sensor while I'm sleeping, and I can wear all my usual clothes with it. I would just recommend some caution while wearing long sleeves so they don't snag. To remove the sensor, peel it off like a band-aid.
The sensor takes one hour to warm up, and then it starts transmitting real-time glucose levels to the Lingo app. One of Abbott's primary goals is to help users recognize glucose spikes, and this is where the app really shines.
Glucose spikes occur when the amount of sugar in the bloodstream increases rapidly and then decreases. It usually occurs after eating, but can also be caused by stress, exercise and other factors. According to Abbott, reducing spikes and improving glucose management can help users improve their sleep and mood, manage their weight and take proactive action about their future health.
To help users visualize the impact of their hikes, the company created a metric called the “Lingo Count.” It's an algorithm that assigns a numerical value to each spike in glucose, which is supposed to represent how significant the effect is.
Over the course of each day, users have a target number of languages they want to stay under, and it adapts to your body over time. My target number of languages was 60 at first, now it's 44.
It's a really useful way to visualize the effect your diet has on your body. For example, when I ate vanilla Greek yogurt, it added 5 points to my language count, and when I ate a few candy bars, it added 14. It's almost counterintuitive, but it really helps reinforce those healthy habits in my mind. I haven't been able to stay under my goal every day, but I have a much better understanding of why this is happening, and what I can work on.
I also loved being able to dig deeper into my Lingo Count data. Users can see their number of languages over the course of a week, month, or over time. It also shows you the time of day you tend to experience the biggest spikes, which in my case is usually the evening.
In order to get the most out of Lingo Count, you need to log your meals and exercise in the app. This is mostly simple, but the app does glitch from time to time. I often have to click input boxes repeatedly before it allows me to type or select, but it always works to my advantage in the end.
Lingo Count is the crown jewel of the Lingo experience, but there are also plenty of other great features in the app. For example, Abbott has a challenges tab to help educate users and keep them engaged as they go about their day.
Challenges are fun, and usually involve small changes you can make to help reduce your glucose spikes. You can specify how many days each challenge lasts. One challenge I completed encouraged me to close my kitchen after dinner to avoid late-night snacks. This week, I'm challenging myself to drink three liters of water a day.
Abbott also has plenty of articles, videos, and recipes available to Lingo users in the Discover tab. I recommend checking out these tips, especially if you're new to glucose management. I think the company does a good job of explaining glucose in plain language.
I'm not good at eating a balanced breakfast, so I tried some of Abbott's recipes for omelettes and overnight oats. I will definitely return to many of these in the future.
Overall, I really enjoyed my experience with Lingo, and it's a tool I would definitely recommend to my family and friends. It's easy to use and wear, and the Lingo Count has helped me better understand how my food choices affect my body over time.
Feel free to send any tips, suggestions, story ideas, and pitches to Ashley at ashley.capoot@nbcuni.com.