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Investment Analysis & Economic News! The Biden administration proposed a new rule that would make millions of Americans with obesity eligible for the popular weight-loss drugs like Wegovy and Ozempic covered by Medicare or Medicaid. It’s estimated this would cost taxpayers as much as $35 billion over the next decade, but I worry it could be even more. Remember Wegovy currently has a list price of $1,300 per month and Zepbound costs $1,000 per month. If people have diabetes or are at risk for stroke or heart disease, they might already have access to these drugs through Medicare of Medicaid. With the new proposal, those who are considered obese would qualify for coverage. For reference, someone who has a body mass index (BMI) of 30 or higher is considered obese. Becerra, the current head of the U.S. Department of Health and Human Services, estimated that an additional 3.5 million people on Medicare and 4 million people on Medicaid could qualify for coverage of the drugs. This contradicts the Centers for Medicare and Medicaid Services as they estimate roughly 28 million people on Medicaid are considered obese. I believe the numbers would be way higher than Becerra’s estimate if the BMI is all they look at. I have long wondered why this is a measurement for health considering it really just likes at your height and weight and doesn’t factor in any muscle composition. I went online to calculate my BMI this morning and it is slightly above 30, but I wouldn’t consider myself unhealthy or in need of these weight loss drugs, especially if taxpayers would have to pay for it. I wouldn’t recommend rushing to buy stocks like Eli Lilly on this news considering RFK, the nominee for HHS Secretary, has been very skeptical of these drugs. Kennedy has said, “For half the price of Ozempic, we could purchase regeneratively raised, organic food for every American, three meals a day and a gym membership, for every obese American.” Based on Kennedy’s stance I would be shocked if this new rule actually became a reality under the new administration. --------------------- As one of San Diego’s leading investment advisory firms, Wilsey Asset Management has built a reputation for effective investment management and expert financial guidance along with financial planning services nationwide. Our goal is to make our clients money and provide attractive returns on their investments transparently. We bring over 42 years of financial expertise to every client we serve. Contact us today for a Free Consultation: (858) 546-4306 To stay up to date on all the latest investing and financial planning news SUBSCRIBE NOW: https://www.youtube.com/user/smartinvestingrecap?sub_confirmation=1 LET'S CONNECT Website: www.wilseyassetmanagement.com Facebook: www.facebook.com/wilseyassetmanagement Instagram: www.instagram.com/brentwilsey | www.instagram.com/chasewilsey Linkedin: www.linkedin.com/in/brentmwilsey | www.linkedin.com/in/chase-wilsey

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