VA Budget Strained by Rising Costs for Obesity and Liver Disease Drugs

With almost one-third of the $6.6 billion medical budget shortfall expected by the Department of Veterans Affairs (VA) ascribed to the rising cost of new medications, including weight-loss drugs like Wegovy and Zepbound, and treatments for diseases like metabolic dysfunction-associated steatohepatitis (MASH).

VA Under Secretary for Health, Dr. Shereef Elnahal, underlined the need of financing to satisfy growing needs for new medications. Elnahal stated during a Monday briefing, "The need for new drugs for obesity and other conditions prevalent in veterans is driving costs."

Among veterans, obesity is a major health concern; studies reveal that up to 78% of VA patients are either overweight or obese. These disorders help to explain chronic problems such diabetes, heart disease, fatty liver diseases and MASH.

The VA keeps a formulary to choose which prescriptions to cover, but as new treatments hit the market it expects increasing expenses. The agency is getting ready to incorporate expensive treatments like Rezdiffra, recently approved for MASH and costing more than $47,000 yearly.

At a cost of $36 billion over ten years, the Biden administration also suggests extending Medicare and Medicaid coverage for obesity drugs. Still, the regulatory procedure won't finish before the January presidential change-of-command.

Emphasizing dietary changes instead, incoming authorities like HHS Secretary candidate Robert F. Kennedy Jr. have voiced doubts about supporting weight-loss medications.

Elnahal underlined the need for more money, saying, "We need more resources to continue providing care at an unprecedented pace."

The VA's rising medical costs, driven by new obesity and liver disease drugs, underscore the need for increased funding to support veterans' health, as debates on treatment priorities continue nationally.

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