How To Put America On Both A Fiscal And Physical Diet
Expanding Medicare and Medicaid Coverage of Weight-Loss Medications: A Cost-Saving Approach
As the Trump Administration and its DOGE team focus on reducing wasteful government spending, particularly in federal health programs like Medicare and Medicaid, there is one area where increased spending could actually lead to significant cost savings in the long run. Expanding coverage of modern weight-loss medications could not only improve health outcomes and save lives but also save taxpayers trillions of dollars.
An alarming 2024 congressional report projected that unchecked obesity in the U.S. could result in $8.2 trillion to $9.1 trillion in additional medical costs over the next decade. This epidemic is not only a health crisis but also a financial burden, with potential impacts on the economy, federal tax revenues, and even military readiness. The majority of active troops are now classified as overweight or obese.
However, a study from the University of Southern California’s Leonard D. Schaeffer Center highlights the potential savings of Medicare and Medicaid coverage of anti-obesity medications (AOMs). Researchers estimate that Medicare coverage of weight-loss therapies could save up to $1 trillion in medical costs over ten years, with even greater savings possible for Medicaid. Obesity is linked to costly illnesses like heart disease, type 2 diabetes, arthritis, and certain cancers.
Heart disease alone cost the nation over $250 billion in 2019–20, with significant implications for both healthcare costs and lost productivity. A study on AOM use among patients with heart disease found a significant reduction in annual healthcare costs per individual. By addressing obesity and reducing the risk of heart disease, healthcare spending could be cut substantially, benefiting programs like Medicare and Medicaid.
The Centers for Medicare & Medicaid Services (CMS) has proposed expanding access to prescribed obesity medications, a move supported by both Democrats and Republicans. This policy change, if implemented, could be part of the Trump Administration’s efforts to Make America Healthy Again.
The current lack of Medicare coverage for AOMs is based on outdated concerns about safety and cosmetic use. Modern AOMs offer real benefits for patients and payers, treating obesity while addressing related chronic diseases. It is paradoxical that Medicare covers weight-gain medications for noncosmetic purposes but not AOMs that could significantly improve health outcomes and reduce healthcare costs.
Expanding Medicare and Medicaid coverage for AOMs is a necessary step in addressing the obesity epidemic and reducing government healthcare spending. While AOMs are not a standalone solution, when combined with lifestyle changes, they can be a valuable tool for individuals, families, seniors, workers, and employers. Embracing this policy change could not only improve health outcomes but also lead to economic benefits, aligning with the goal of Making America Great Again.
