Medicare falls short on projected Alzheimer’s drug costs as fewer seniors use Leqembi

Bob Herman reports that Medicare's earlier estimate that the new Alzheimer's therapy Leqembi would cost the program $3.5 billion in 2025 has proved far too high. The agency's actuaries based the forecast on expected uptake, but actual enrollment of seniors on the drug is much lower than anticipated.

The shortfall means Medicare is spending considerably less on the high-priced treatment than the projection suggested. Fewer patients are receiving Leqembi, which reduces the program's drug-spending burden but also signals limited adoption of the therapy.

Analysts note that the discrepancy could affect future budgeting for Alzheimer's drugs and may influence how Medicare evaluates coverage and pricing for similar high-cost therapies going forward.