Spending on diabetes drugs skyrockets, gov’t says ‘Medicare does not cover drugs prescribed for weight loss’
By HME News Staff
Updated 10:01 AM CST, Tue February 25, 2025
WASHINGTON – Medicare Part D spending for 10 selected diabetes drugs totaled more than $35.8 billion in 2023, a 364% increase from 2019, according to a new data brief from the Department of Health and Human Services Office of Inspector General.
Meanwhile, the number of Medicare Part D enrollees increased from 44.9 million to 50.5 million, a 12% increase.
“Certain diabetes drugs initially approved by the Food and Drug Administration to help control blood sugar levels for individuals with Type 2 diabetes are known to be effective weight loss agents,” the brief states. “Prescriptions for and spending on diabetes drugs increased substantially in the last five years. Medicare Part D covers diabetes drugs for FDA-approved indications such as Type 2 diabetes or cardiovascular disease, or if that coverage is offered as an enhanced Part D benefit, but it does not cover drugs prescribed for weight loss.”
Medicare Part D spending for Ozempic, specifically, increased from $552 million to $9.2 billion, a 1,568% increase, while the number of enrollees filling a prescription for the drug increased from 142,479 to 1,465,482, a 929% increase.
Projected Medicare Part D spending for the selected diabetes drugs could reach $102 billion by 2026, according to the data brief.
“This substantial increase could have a financial impact on the Medicare program,” the brief states. “Information in this data brief may be beneficial to CMS and other policymakers when developing future program guidance related to these drugs.”
- Related: FDA approves GLP-1 for OSA.
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