Medicare estimates the cost of the Alzheimer’s drug Leqembi at $3.5 billion

MEdicare has estimated for the first time that a new treatment for Alzheimer’s disease could cost the program billions of dollars next year — far more than what Wall Street or even the drug’s manufacturer has predicted — according to a document obtained by STAT.

Medicare actuaries expect the drug Leqembi, made by Japanese drugmaker Eisai and sold in partnership with Biogen, to cost the traditional Medicare program about $550 million in 2024 and the entire Medicare program $3.5 billion in 2025 , said a spokesperson for the Centers for Medicare and Biogen. Medicaid Services confirmed to STAT. That projection predicts a major increase in usage over the next year and a half.

The tribute was buried in a new one CMS document which answered questions about next year’s payments for Medicare Advantage plans, which cover more than 33 million people and serve as an alternative to the traditional Medicare program.