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Drugs like Wegovy, Ozempic would be covered by Medicare, Medicaid under Biden proposal
Washington — Millions of Americans with obesity would be eligible to have popular weight-loss drugs like Wegovy or Ozempic covered by Medicare and Medicaid under a new rule the Biden administration proposed Tuesday morning.
The costly proposal from the U.S. Department of Health and Human Services sets the stage for a potential showdown between the powerful pharmaceutical industry and Robert F. Kennedy Jr., an outspoken opponent of the weight-loss drugs who, as President-elect Donald Trump’s nominee to lead the agency, could try to block the measure.
While the rule would give millions of people access to weekly injectables that have helped people shed pounds so quickly that some have labeled them miracle drugs, it would cost taxpayers as much as $35 billion over the next decade.
“It’s a good day for anyone who suffers from obesity,” U.S. Health and Human Services Secretary Xavier Becerra told The Associated Press in an interview. “It’s a game changer for Americans who can’t afford these drugs otherwise.”
“This proposal would allow Americans and their doctors to determine the best path forward so they can lead healthier lives, without worrying about their ability to cover these drugs out-of-pocket, and ultimately reduce health care costs to our nation,” the White House said in a statement.
A bipartisan coalition of congressional members have lobbied for the drugs to be covered by Medicare, saying it could save the government from spending billions of dollars on treating chronic ailments that stem from obesity.
While it’s unclear where Trump himself stands on coverage of the weight-loss drugs, his allies and Cabinet picks who have vowed to cut government spending could balk at the upfront price tag.
Under the proposal, only those who are considered obese – someone who has a body mass index of 30 or higher – would qualify for coverage.
Some people may already get coverage of the drugs through Medicare or Medicaid if they have diabetes or are at risk for stroke or heart disease.
Becerra estimated that an additional 3.5 million people on Medicare and 4 million on Medicaid could qualify for coverage of the drugs. But research suggests far more people might qualify, with the Centers for Medicare and Medicaid Services estimating roughly 28 million people on Medicaid are considered obese.
“These anti-obesity medications can help prevent the development of Type 2 diabetes,” the White House said in the statement. “Furthermore, these drugs reduce deaths and sickness from heart attack and other cardiovascular outcomes by up to 20%.”
Medicare has been barred from offering the drugs under a decades-old law that prohibits the government-backed insurance program from covering weight-loss products. The rule proposed by the Biden administration, however, would recognize obesity as a disease that can be treated with the help of the drugs.
The anti-obesity drug market has expanded significantly in recent years, with the Food and Drug Administration approving a new class of weekly injectables like Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound to treat obesity.
People can lose as much as 15% to 25% of their body weight on the drugs, which imitate the hormones that regulate appetites by communicating fullness between the gut and brain when people eat.
The cost of the drugs has largely limited them to the wealthy, including celebrities who boast of their benefits. A monthly supply of Wegovy rings up at $1,300 and Zepbound will put you out $1,000. Shortages of the drugs have also limited the supplies.
Kennedy, who as Trump’s nominee for HHS secretary is subject to Senate confirmation, has railed against the drugs’ popularity. In speeches and on social media, he’s said the U.S. shouldn’t cover the drugs through Medicaid or Medicare. Instead, he supports a broad expansion of coverage for healthier foods and gym memberships.
“For half the price of Ozempic, we could purchase regeneratively raised, organic food for every American, three meals a day and a gym membership, for every obese American,” Kennedy said to a group of federal lawmakers during a roundtable earlier this year.
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There are points in life when you may face an unexpected expense, a job loss or another type of emergency, and when these issues arise, the price tag can be quite high. That can place a heavy burden on your budget, especially if you’re already having a tough time making ends meet. And, right now, about half of Americans say they’re living paycheck to paycheck, according to a recent Bank of America survey, so there are a lot of people who simply can’t afford to pay for surprise expenses while managing their regular bills.
If your finances are stretched too thin, it can be easy to fall behind on what you owe, especially if you’re trying to pay off high-rate credit card debt. When this happens, the constant calls from creditors, the mounting late fees and the growing balances can make it tempting to ignore the situation altogether. But avoiding your creditors is usually the worst possible response, as it can lead to legal action, damaged credit and even more financial hardship.
The good news is that most creditors would rather work with you than against you if you’re struggling to pay off what you owe. They understand that there are circumstances that can impact anyone’s ability to pay — and that finding a solution benefits both parties. But how exactly should you deal with your creditors when you can’t afford to pay back what you owe?
Start tackling your high-rate credit card debt now.
3 smart ways to deal with creditors when you can’t pay
The following strategies could make it easier to deal with your creditors if you’re behind on your debt payments:
Try to negotiate a reduced balance
If you’re in severe financial distress, your creditors may be open to negotiating a reduced balance on the account. Most creditors often prefer to accept a partial payment rather than risk receiving nothing at all. This approach is especially effective with unsecured debts, such as credit cards or personal loans.
Start the negotiation by explaining your financial hardship and proposing a lump-sum payment for less than the total balance. For example, you might offer to pay 40% to 50% of the balance upfront, with the remaining portion being written off by the credit card issuer. If you’re unable to make a lump-sum payment, you can also ask about monthly payment plans for the reduced amount.
Just make sure to get any agreement in writing before making a payment. Written documentation protects you from future disputes or collection efforts, so you don’t want to skip that step.
Find out how the right debt relief options could benefit you now.
Ask them for help
While asking for help from your creditors may seem counterintuitive, it can be a smart way to approach your debt. Many creditors offer hardship programs to assist customers experiencing temporary financial setbacks. These programs are designed to make payments more manageable while helping you avoid default.
The availability of these programs varies by creditor, but many are willing to provide temporary relief in some form to help you get back on track. If you enroll in this type of program, you may be offered relief via:
- Temporary payment deferrals: The creditor may pause your payments for a few months to give you time to recover.
- Lower interest rates: Your creditors may also agree to reduce your interest rates, which lowers your monthly payment and the total cost of your debt over time.
- Waived fees: Some creditors will eliminate late fees or penalties to ease your financial burden.
- Adjusted minimum payments: Some creditors will offer temporary relief in the form of smaller payments during a set period.
Utilize one of your debt relief options
If your financial challenges are more than temporary, you might need to explore professional debt relief solutions. The following options can help you restructure or reduce your debts, depending on your needs and goals:
Debt consolidation
Consolidating multiple debts into a single loan can simplify your payments and potentially lower your interest rate. This option tends to work best if you have good credit and steady income, but some debt relief companies will also offer debt consolidation programs that have more flexible requirements. Benefits of this option include:
- One monthly payment instead of many
- Potentially lower interest rates
- Fixed repayment timeline
- Simplified debt management
Debt management
Working with a credit counseling agency on a debt management plan. With this option, the counseling agency works with your creditors to lower interest rates, reduce fees and roll your debts into a single, affordable monthly payment. You’ll then make one payment to the agency, which distributes it to your creditors. Benefits of this option include:
- Reduced interest rates
- Waived fees
- Structured repayment plan
- Single monthly payment to the counseling agency
- Professional negotiation with creditors
Debt forgiveness
If you’re unable to pay your debts in full, a debt relief company can negotiate with creditors on a debt forgiveness plan where they accept a reduced payoff amount. While there’s no guarantee that your debt will be settled, this option often results in paying 30% to 50% less than what you currently owe. The remaining portion of your balance is then “forgiven” by the creditor.
The bottom line
Dealing with creditors often requires patience and persistence and a little knowledge on your part. By approaching your creditors professionally and armed with an understanding of your options, you’re more likely to find constructive solutions that help you manage your debt effectively while protecting your long-term financial interests. The key is to act quickly, communicate clearly and stay committed to resolving the situation through whatever means work best for your circumstances.
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Tom Homan, selected by President-elect Donald Trump to be the “border czar” in the new administration, is traveling Tuesday to the U.S.-Mexico border with Texas Gov. Greg Abbott, Abbott’s office said.
Homan and Abbott will be serving meals to Texas National Guard soldiers and Texas Department of Public Safety troopers who are stationed at Eagle Pass and Edinburg over Thanksgiving, Abbott’s office said. They are stationed there as part of Operation Lone Star, a border mission Abbott launched in March 2021 — alleging insufficient support from the Biden administration to combat the flow of immigration along the Texas-Mexico border.
Abbott has touted the border mission — which deployed thousands of police and soldiers and miles of barriers — as a success, despite testimony before a GOP-led Texas Senate panel earlier this year about low morale among troops, humanitarian concerns and ballooning costs. Additionally, the Biden Department of Justice and the American Civil Liberties Union have sued Texas, arguing the law interferes with the federal government’s authority over immigration.
Abbott told “60 Minutes” earlier this year that Texas is “enforcing the laws that are the policy of the United States Congress” with Operation Lone Star.
Earlier this month, Trump announced Homan, who served as the acting director of Immigration and Customs Enforcement in his first term, would be the new administration’s “border czar.” Trump vowed on the campaign trail to undertake the largest deportation program in history, which would likely be overseen by Homan.
Speaking on “Fox and Friends” on Tuesday morning, Homan said he and Abbott are “already planning” and “not waiting until Jan. 20,” which is Inauguration Day, although he did not elaborate what they could do before Trump takes office. He outlined last month some of how he plans to carry out the deportations to “60 Minutes,” saying it will be “targeted arrests,” although he said there would not be a “mass sweep of neighborhoods.”
Homan and Abbott appeared on Fox News on Monday night, with Homan saying they’re “going to enforce the law period, and they’re not going to stop us,” referring to mayors of cities who said they would not enforce deportations.
Homan was the architect of the first Trump White House’s “zero tolerance” policy toward immigration. He was one of three officials who signed a policy memo that then-Homeland Security Secretary Kirstjen Nielsen approved to greenlight family separations.
Internal Customs and Border Protection figures obtained by CBS News show that the number of illegal border crossings at the U.S.-Mexico border are on track to drop to a new low for the Biden administration in November. The last time illegal border crossings were lower was in the summer of 2020 amid the COVID-19 pandemic.
contributed to this report.