The Trump administration is preparing a pilot program that would, for the first time, allow Medicare and Medicaid to reimburse for weight-loss medicines, according to a Washington Post report. The experiment, scheduled to start in January 2027, would test how the federal health-insurance programs cover GLP-1 drugs and gather data on cost and clinical outcomes before any broader rollout. Coverage is expected to include blockbuster GLP-1 agonists such as Eli Lilly’s tirzepatide-based Zepbound and Novo Nordisk’s semaglutide-based Wegovy, which are currently excluded from Medicare under a 2003 statute that bars payment for weight-loss treatments. Extending reimbursement could give millions of beneficiaries access to medicines that have transformed obesity care but can cost more than $1,000 a month out of pocket. Analysts say federal coverage would accelerate growth in an obesity-drug market already estimated at more than $150 billion, boosting revenue prospects for Lilly and Novo. Both companies’ shares traded higher after reports of the plan. CMS has not commented publicly, and detailed parameters of the pilot, including eligibility criteria and pricing terms, are expected to be released later this year.
$NVO $LLY $HIMS Eli Lilly stock rises, Novo Nordisk shares jump on potential Medicare coverage https://t.co/d0OUPFaB7V
All the health conditions weight-loss drugs are being used and tested for https://t.co/QPLlgcOf1w https://t.co/gUAHII29fO
Danish drugmaker Novo Nordisk was at the forefront of the weight-loss injection boom but failed to keep up with runaway demand and misjudged the speed and scale of competition. Here’s what to know. https://t.co/ClOj5ourqi