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"It's a very expensive procedure, and even if someone has coverage, they may have to pay a copay of a few thousand dollars," Nachman said. "And that's why in a tough economy, we've seen this franchise struggle more than you would normally."
According to Nachman, the payment issues for Lap-Band will only increase if it is approved for patients with less severe obesity. He projects a modest 8 percent rise in Allergan's business through 2014 to about $258 million.
Susan Pisano, a spokeswoman for the industry trade group America's Health Insurance Plans, said she believes a majority of insurers now cover bariatric surgeries.
"They may approach this surgery in a cautious way, but I think there is a broad acknowledgment that there is a place for surgery in the treatment of morbidly obese people," she said, noting that some employers who provide group health coverage choose not cover the procedure in their plans.
The FDA's consideration of the Lap-Band comes as rising health care costs threaten to consume nearly a fifth of the U.S. economy. Obesity-related health care spending is estimated at $147 billion, double the level of a decade ago.
While experts say the Lap-Band can help patients control their weight, it cannot replace healthy lifestyle choices.
"It is a tool to make the lifestyle easier, but not easy. It doesn't help people exercise more or resolve their behavioral issues," said Madelyn Fernstrom, director of the University of Pittsburgh's weight management center. "It's most important for people to understand what it can and can't do."
To change eating behavior, the drug industry has invested billions of dollars to develop weight-loss medications, most of which have not proven effective.
The FDA has rejected two such medications this year alone because of safety concerns.
On Friday the agency issued a lackluster review of a third drug called Contrave, which combines an antidepressant with an anti-addiction drug used to treat alcoholism.
Experts say such drugs have been largely unsuccessful at addressing the main obstacle to weight loss: the brain's fundamental drive to eat enough food to maintain current weight.
Dr. Derek Lowe, a pharmaceutical researcher and blogger, says unless medicine finds a way to address that issue, devices like the Lap-Band will have mixed effectiveness.
"There are certainly people who've had gastric bypass surgery and managed to turn themselves back into their original size by sipping on milkshakes all day," he said.
[Associated
Press;
Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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