The center of the Medicare and Medicade Services said that on Friday it did not proceed with the proposal made by the Biden administration for medicare coverage of Novo Nordisk’s Weight -loss drugs.
Novo’s US-listed shares fell 1.4% in aftermarket trading, while Ellie Lily’s obesity drugs that make Jeepbounds, below 3.1%.
This proposal would have enabled more Americans to bear new drugs in the GLP-1 category that has shown to reduce weight by 20% and prevent type 2 diabetes, but costs as much as $ 1,000 per month without insurance coverage.
Medicare, government’s health insurance program for people aged 65 years or older, or those who have disabled, currently cover the use for conditions such as GLP -1 drugs such as Lily’s silence and diabetes of Novo, but not to versions of drugs that have been approved to treat obesity.
Bernstein analyst Curtainy Burn said it was “not surprising,” saying that “with a pharmaceutical tariff, saying that it is not time for administration to be received without administration.”
Lily said that in a statement it was disappointed with the move, and it would “continue working with the Trump administration and Congress leaders to ensure that people living with obesity have been covered by Medicare and Medicade and are no longer left behind.”
A spokesperson from the Novo Nordisk said “Today’s announcement was limited,” the company hopes that the Trump administration will soon finalize the definition of obesity.
“It is necessary that the CMS rules align with the current medical science – and it means that obesity is to be identified as a serious chronic disease.”
US Health Secretary, Robert F. Kennedy Junior has earlier stated that the US should deal with obesity through healthy food and not through medicine.
CMS also said that it was not proceeding with two other proposals. A one who was required to analyze their healthcare use policies from a health equity perspective, and another who demands a guardril on artificial intelligence devices, is being used for denying or delays between concerns that they are being used or delayed.
