Trump administration scraps Biden's plan to cover weight-loss drugs like Ozempic on Medicare and Medicaid

Donald Trump’s team gutted the Biden administration’s plan as part of a sprawling 438-page regulation update that tweaks how beneficiaries get drug coverage
PUBLISHED APR 6, 2025
President Donald Trump's team made it clear that they’re not buying into former president Joe Biden’s billion-dollar bet on drugs like Ozempic (Getty Images)
President Donald Trump's team made it clear that they’re not buying into former president Joe Biden’s billion-dollar bet on drugs like Ozempic (Getty Images)

WASHINGTON, DC: Just when it looked like former president Joe Biden was about to flip the script on Medicare coverage for blockbuster weight-loss medications, the Trump administration swooped in and axed the plan.

On Friday, April 4, President Donald Trump's team made it clear that they’re not buying into Biden’s billion-dollar bet on drugs like Ozempic. 

WASHINGTON, DC - JANUARY 20:  U.S. President Joe Biden delivers his inauguration address on the West
In November 2024, the Joe Biden administration created a bold plan to bypass a long-standing rule that forbids Medicare’s Part D from covering drugs used for 'weight loss' (Getty Images)

Joe Biden’s billion-dollar bet on obesity drugs

Last November, the Biden administration created a bold plan to bypass a long-standing rule that forbids Medicare’s Part D from covering drugs used for "weight loss."

The idea was to open the floodgates and let millions of Americans tap into Medicare and Medicaid to get access to drugs like Ozempic and Wegovy.

The Biden camp didn’t frame this as just a diet plan. They argued these medications weren’t just about shedding pounds but about treating obesity and its many dangerous side effects— diabetes, heart problems, and sleep apnea, to name a few.

WASHINGTON, DC - NOVEMBER 06: U.S. President Joe Biden speaks during a press conference in the State
Former president Joe Biden speaks during a press conference in the State Dinning Room at the White House on November 6, 2021, in Washington, DC (Samuel Corum/Getty Images)

If approved, the plan would’ve added an estimated 3.4 million Americans to the list of eligible recipients. That’s a lot of new customers — and a whole lot of government money.

The price tag was an eye-popping $35 billion over the next decade, or roughly $3.5 billion a year. That kind of spending was sure to become a prime target for Elon Musk’s new watchdog agency, the Department of Government Efficiency (DOGE) — a brainchild of the Trump administration tasked with cutting "wasteful" federal spending.

Donald Trump's team drops the hammer

Donald Trump’s team essentially gutted the Biden administration’s plan on Friday as part of a sprawling 438-page regulation update that tweaks how beneficiaries get drug and private medical coverage, The New York Times reported.

But the final document gave zero explanation for why these weight-loss drugs should remain off the Medicare menu.

Instead, they offered a vague, polite brush-off. 

Catherine Howden, a spokeswoman for the Centers for Medicare and Medicaid Services (CMS), kept it cryptic in an email to the outlet and said the agency believes expanding coverage just "is not appropriate at this time."

Still, she added that CMS "may consider future policy options."



 

Medicare and Medicaid coverage

Right now, Medicare does cover these drugs, but only in limited cases — namely, when someone has diabetes or a combo of obesity with another health issue, like sleep apnea or cardiovascular disease. Biden’s proposal would’ve tossed those conditions aside and simply offered access to the drugs with no strings attached.

Medicaid is even more of a toss-up. Since it’s run by individual states, some cover the drugs, some don’t. But if Biden’s plan had become law, Medicaid coverage would’ve been mandatory nationwide.

As for private insurers, many are still playing hardball. State employee benefit plans in places like North Carolina and West Virginia have already dumped coverage, citing skyrocketing costs amid the surge in demand. 



 

Currently, if you’re paying out of pocket for brand-name drugs like Ozempic or Mounjaro, you’re looking at a price tag of $350 to $500 a month. And that’s already a drop from earlier this year, when prices were soaring over $1,300 per month.

So when the brand-name meds were in short supply, a whole underground market popped up using a drug-ingredient mixing process called compounding. These bootleg versions were going for under $200 a month. However, regulators are starting to crack down now that supply issues are easing and the cheap versions are being phased out.

RFK Jr isn’t impressed despite GOP interest

Robert F Kennedy Jr, the Secretary of Health and Human Services, has made no secret of his disdain for Ozempic and similar drugs. He has called the drugs inferior to healthy eating.

HOLLYWOOD, CALIFORNIA - JANUARY 13: Robert F. Kennedy, Jr. speaks onstage at Food & Bounty At Sunset
Robert F Kennedy Jr speaks onstage at Food & Bounty at Sunset Gower Studios on January 13, 2019, in Hollywood, California (Joe Scarnici/Getty Images)

Some Republican lawmakers have shown interest in forcing Medicare to cover the drugs, but it’s barely a blip on their radar.

The idea was buried in a list of policy options from the House Budget Committee earlier this year, but nothing’s been pushed aggressively.

GET BREAKING U.S. NEWS & POLITICAL UPDATES
STRAIGHT TO YOUR INBOX.

MORE STORIES

A Democratic strategist said that the images do suggest a 'certain acceptance' of the environment that allowed for someone like Epstein to exist
3 hours ago
After the Epstein files release, Hillary Clinton stayed detached, chose not to defend Bill Clinton, and left him to face the fallout alone
5 hours ago
Mark Epstein claimed that the Department of Justice is 'sanitizing' Epstein files to remove Republican names but offered no evidence to support it
8 hours ago
Trump criticized media outlets for focusing on Epstein rather than economic, defense, and healthcare achievements
8 hours ago
Ro Khanna said that every time the government withholds documents, it only fuels suspicion
10 hours ago
Trump also said 'Look, I don’t like the—I like Bill Clinton. I’ve always gotten along with Bill Clinton' as he commented on the pictures of the former pres being prominently featured in the documents
10 hours ago
The lawsuit claimed that the Metropolitan Police Department unlawfully restricted AR‑15s and other popular guns, violating constitutional rights
12 hours ago
Lawmakers warned that without clear definitions, the rule could penalize lawful program users and lead officers to apply inconsistent standards
13 hours ago
Officials confirmed that the returning diplomats were to be reassigned within the State Department and encouraged them to apply for new assignments
14 hours ago
A CNN survey for the 2028 presidential race showed Republicans rallying behind JD Vance at 11%, while Gavin Newsom led Democrats with just 6% support
15 hours ago