Eli Lilly (LLY) and Novo Nordisk's (NVO) GLP-1 drugs included in President Trump's plan to extend coverage of weight-loss treatments for certain Medicare beneficiaries would cost health insurers billions of dollars in its first year, Bloomberg reported Thursday, citing an analysis published in the Journal of the American Medical Association.
The administration has claimed that the lower prices it negotiated with drugmakers last year would offset the cost of adding coverage for millions of new patients, but estimated savings of over $900 million would cover only 4.4% of the eligible patients under the Medicare drug benefit program, according to the analysis cited by Bloomberg.
The deadline of April 20 is fast approaching for insurers, who are considering whether to join the optional program in 2027, according to the report.
The Trump administration is aiming for insurers covering 80% of the Medicare population, or it will not proceed with the program, the report said.
"There is no way they could expand coverage without it affecting premiums pretty dramatically," Bloomberg quoted Vanderbilt University Professor of Health Policy Stacie Dusetzina, lead researcher for the analysis, as saying.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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