Medicare's Weight Loss Drug Coverage Could Cost $35 Billion by 2034.

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Good afternoon and happy Tuesday! It's no surprise that expanding Medicare coverage of costly weight loss drugs could result in a significant expense for the federal government.

According to a report from the U.S. Congressional Budget Office, allowing Medicare to cover obesity medications would result in an estimated federal spending increase of approximately $35 billion from 2026 to 2034.

According to the CBO, the federal expenses for covering those drugs will increase from $1.6 billion in 2026 to $7.1 billion in 2034.

The government is being urged by drugmakers and advocacy groups to increase coverage of GLP-1s for obesity, such as Wegovy and Zepbound, which cost around $1,000 per month before insurance and rebates.

Medicare only covers weight loss treatments when they are approved and prescribed for another health condition, such as Wegovy for reducing the risk of serious cardiovascular complications in those with heart disease and obesity, but not for weight loss alone.

The CBO anticipates that cost savings will result from decreasing the occurrence of obesity-related health issues among patients.

Although it is stated that the savings could be relatively small, totaling less than $50 million in 2026 and about $1 billion in 2034, it is still believed that they will grow over time.

The CBO stated in the report that while net federal savings per user are projected to be larger in the long term, they would still be less than the cost of the medications.

According to the CBO, the cost of drugs may decrease in the future.

The CBO predicts that generic versions of popular weight loss injections will enter the market and reduce prices, resulting in a decrease in average net prices for obesity medications by 2027.

Wegovy and Ozempic, which contain semaglutide as their active ingredient, are among the 15 prescription drugs that may be included in the next round of price negotiations, set to begin in 2025 and take effect in 2027.

But how could Medicare coverage of those treatments impact access?

According to the CBO, if Medicare covers weight loss drugs, approximately 12.5 million beneficiaries would become eligible for these treatments starting in 2026. Out of these patients, about 2% are predicted to utilize the treatments in the first year.

More than two-thirds of Medicare beneficiaries are

classified as either obese or overweight, according to their

body mass index, the CBO said.

Notably, spending could look slightly different beyond 2034.

According to the CBO, Medicare spending on weight loss drugs per user will decrease due to lower drug costs and increasing savings. However, Medicare coverage of these treatments will still increase net federal costs from 2034 to 2044, the CBO stated.

The cost of obesity in the U.S. is estimated to be over $1.7 trillion annually, according to a spokesperson from Novo Nordisk.

The spokesperson stated that although the treatment of obesity is linked to improved medical outcomes, bureaucrats have not yet determined how to factor in these savings. The company hopes that Medicare will begin to cover weight loss drugs.

Eli Lilly did not immediately respond to CNBC's request for comment.

Rewritten sentence: Please provide any tips, suggestions, story ideas, and data to Annika at [email protected].

Latest in health-care tech: CNBC tests Abbott's continuous glucose monitor Lingo

For weeks, I have been testing a new continuous glucose monitor that is consumer-friendly and provides a detailed view into how metabolism works.

A small sensor called Lingo is worn on the back of the right arm to measure real-time glucose levels. It's comfortable and easy to use, but often goes unnoticed.

I have used continuous glucose monitors before, but this was my first time testing one from Abbott. The company released Lingo in September, following Dexcom's launch of Stelo in late August. I reviewed Stelo for CNBC prior to its release.

If you want a more comprehensive view of your glucose data over time, Abbott's app is likely the better choice compared to Dexcom's. While Lingo and Stelo share many similarities, Abbott's system offers a more granular look into your metabolism.

Glucose, a sugar molecule obtained from food, is our bodies' primary source of energy. Although everyone's glucose levels differ, consistently high levels can lead to serious health issues such as metabolic disease, insulin resistance, and heart disease. Lingo, developed by Abbott, aims to educate users about their habits and help them manage their glucose levels in a healthier manner by providing information on glucose management.

Lingo is a continuous glucose monitor that is not typically prescribed to patients with diabetes, but is intended for adults like me who do not have the disease. It can be purchased without a prescription and is available online for $49 for one sensor, $89 for two sensors, or $249 for six sensors.

Stelo sensors from Dexcom can be purchased over the counter, and a monthly subscription for two sensors costs $89. Lingo sensors last up to 14 days, while Stelo sensors can last up to 15 days before needing replacement.

After downloading the Lingo app, you can easily use the sensors by entering basic biological information and following the app's step-by-step instructions.

I assembled my applicator, which contains a needle and a flexible filament that lies beneath the sensor in the upper arm.

Applying Lingo made me a little nervous, but I had to hype myself up to do it. The applicator was a little intimidating to use, but I had to stamp it firmly onto my arm. Applying Stelo with Dexcom's applicator was easy, all I had to do was click a button.

I eventually mustered the courage to press down on my sensor, and it was nothing to worry about. Although I experienced some discomfort, it disappeared after approximately 10 minutes. When my 14-day period ended and it was time to replace my sensor, I felt much more confident the second time around.

Wearing a sensor is effortless and unnoticed while sleeping, allowing for comfortable use of regular clothing. However, it's important to be cautious when pulling on long sleeves to prevent snagging. To remove the sensor, simply peel it off like a Band-Aid.

The Lingo app is particularly useful in helping users understand glucose spikes, as one of Abbott's main objectives is to educate users about this aspect of their glucose levels. After an hour of warming up, the sensor begins transmitting real-time glucose readings to the app.

Rapidly increasing and decreasing glucose levels in the bloodstream can cause spikes, which are commonly triggered by eating but can also result from stress, exercise, and other factors. By managing glucose levels, individuals can enhance their sleep and mood, control their weight, and take a proactive approach to their health, as suggested by Abbott.

The company developed a metric known as the "Lingo Count" to help users understand the impact of their glucose spikes. This algorithm assigns a numerical value to each spike, representing its significance.

Initially, my Lingo Count target was 60, but now it has adjusted to 44.

Understanding the impact of your diet on your body can be helpful in reinforcing healthy habits. For example, consuming a vanilla Greek yogurt adds 5 points to your Lingo Count, while eating candy adds 14. Although I haven't been able to stay below my target every day, I have a better understanding of why and what I can work on.

I enjoyed exploring my Lingo Count data in greater depth. Users can track their Lingo Count over a week, a month, or for the entirety of time. Additionally, the feature displays the time of day when the largest spikes occur, which is typically during the evening for me.

To maximize the benefits of Lingo Count, it is essential to record your meals and physical activity in the app. Although this process is generally straightforward, the app occasionally experiences technical difficulties. I frequently need to repeatedly tap on the input boxes before it allows me to input information or make a selection, but it eventually works for me.

The Lingo app offers a range of features, with Lingo Count being the standout feature. However, there are other useful features, such as Abbott's tab with challenges to educate and engage users throughout the day.

Completing challenges can be enjoyable, and they often entail minor adjustments to help regulate glucose levels. You have the freedom to determine the duration of each challenge. For instance, one challenge I accomplished motivated me to close my kitchen following dinner to prevent late-night snacking. Currently, I am challenging myself to consume three liters of water daily this week.

Lingo offers a wealth of resources, including articles, videos, and recipes, for users in the discover tab. It's a great resource for those new to glucose management. The company does an excellent job of explaining glucose in simple terms.

I struggled with eating a balanced breakfast, so I tried Abbott's omelet and overnight oats recipes. I plan to return to many of these in the future.

Overall, I've had a great experience with Lingo, and I would highly recommend it to my loved ones. The tool is user-friendly and comfortable to wear, and Lingo Count has helped me comprehend how my dietary decisions affect my body in the long run.

Rewritten sentence: Please provide any tips, suggestions, story ideas, and data to Ashley at [email protected].