Medicare and Medicaid May Expand Coverage for Weight-Loss Drugs

The Trump administration is reportedly considering a five-year pilot program to include weight-loss drugs under Medicare and Medicaid coverage, according to a Washington Post report. The documents from the Centers for Medicare and Medicaid Services outline a plan that could potentially include drugs such as Novo Nordisk's Wegovy and Ozempic, as well as Eli Lilly's Zepbound and Mounjaro.

If enacted, the pilot program would expand current coverage efforts, starting with a Medicaid pilot in April 2026 and a Medicare pilot in January 2027. This marks a shift in federal policy, as the policy was rejected earlier this year. Currently, only 13 states cover these drugs for Medicaid patients. Medicare generally prohibits their use for weight loss alone.

This proposal might help address the affordability issue, as these drugs cost between $5,000 and $7,000 annually. Analysts believe that if approved, the plan could significantly benefit companies like Eli Lilly. Both Lilly and Novo Nordisk are ramping up investments to meet increasing demand, with Novo committing $4.1 billion to expand manufacturing.

(With inputs from agencies.)