Medicare and Medicaid May Soon Cover Weight-Loss Drugs

The Trump administration is evaluating the possibility of covering weight-loss drugs under Medicare and Medicaid, according to documents obtained by the Washington Post from the Centers for Medicare and Medicaid Services.

These GLP-1 drugs, initially meant for type 2 diabetes, have gained traction due to their ability to control weight by reducing appetite and slowing digestion. However, their annual costs, ranging from $5,000 to $7,000, pose substantial financial challenges. The proposed initiative would allow state Medicaid programs and Medicare Part D to voluntarily include GLP-1 drugs in their coverage plans, as reported.

Pharmaceutical giants Lilly and Novo are spearheading the weight-loss drug market, which analysts predict could reach over $150 billion in revenue within the next decade. Lilly's stocks rose by approximately 2% in premarket trading following the announcement. The plan is scheduled to start for Medicaid in April 2026 and for Medicare in January 2027, representing a significant shift from prior federal policy stances opposing coverage for weight-loss drugs. Efforts to broaden access to these medications were seen earlier under the Biden administration. Official responses from the Centers for Medicare & Medicaid Services, Lilly, and Novo are still pending.

(With inputs from agencies.)