Senator Bernie Sanders has expressed concerns following a new proposal from the U.S. Department of Health and Human Services (HHS) aimed at expanding coverage for anti-obesity medications under Medicare and Medicaid. The announcement was made on November 26, 2024.
Sanders, who chairs the Senate Committee on Health, Education, Labor, and Pensions (HELP), issued a statement regarding the potential financial impact of the proposal. He highlighted both positive and negative aspects: “The good news is that HHS recognizes that vitally important anti-obesity medicines like Wegovy and Zepbound should be made available to all Americans, regardless of income. The bad news is that unless Medicare demands that Novo Nordisk and Eli Lilly substantially reduce the prices for these anti-obesity drugs, Medicare premiums for all seniors would skyrocket.”
He further elaborated on the necessity of cost control to ensure fiscal responsibility: “If this proposal is to be financially responsible for seniors and taxpayers, Medicare and Medicaid cannot pay up to 10-15 times more for these drugs than they cost in Europe and other major countries. We cannot allow Medicare and Medicaid to simply be a cash cow for Novo Nordisk and Eli Lilly.”
In September, Sanders led a HELP Committee hearing investigating why Novo Nordisk charges significantly higher prices in the United States compared to other countries for its products like Ozempic and Wegovy. Epidemiologists estimate that making these weight-loss drugs affordable could save over 40,000 lives annually in the U.S.
A report released by the HELP Committee Majority Staff in May analyzed how new weight loss drugs might affect prescription drug spending. The findings indicated significant potential costs if usage increased among adults with obesity:
- If half of obese adults used Wegovy or similar drugs, annual costs could reach $411 billion—surpassing total retail prescription drug spending in 2022.
- For Medicare and Medicaid patients alone, expenses could hit $166 billion per year.
- Without price reductions, total spending on prescription drugs could rise to $1 trillion annually.
The report also suggested substantial savings if U.S. prices aligned with those in Denmark: "If Novo Nordisk charged Americans the same price it charges people in Denmark for Wegovy," potential savings could reach $317 billion per year across the healthcare system.
Sanders emphasized that lowering prices to Danish levels could make treatment affordable for all obese adults while costing less than current expenditures covering just a quarter of this population.
