The Trump administration is considering a major policy shift that would allow Medicare and Medicaid to pay for weight-loss drugs, according to internal Centers for Medicare & Medicaid Services documents cited by the Washington Post and reported by Reuters. The initiative would take the form of a five-year pilot program and marks a departure from an April decision that halted a similar Biden-era proposal. Under the draft plan, government insurance programs would cover Novo Nordisk’s Wegovy and Ozempic and Eli Lilly’s Zepbound and Mounjaro for obesity treatment. Coverage would begin in April 2026 for participating state Medicaid plans and in January 2027 for Medicare Part D plans, giving public insurers access to medications that reduce body weight by 15%–20% in trials. The move could affect roughly 135 million beneficiaries—about 70 million enrolled in Medicaid and 65 million in Medicare. The drugs list for an estimated $5,000 to $7,000 a year, and The Independent reported that Medicare spending could reach $35 billion between 2026 and 2034, raising questions about long-term affordability for federal and state budgets. Investors welcomed the prospect of broader coverage. Eli Lilly shares rose about 2-3% and Novo Nordisk gained roughly 1-2% on Friday, while telehealth company Hims & Hers Health, which offers alternative weight-management products, fell about 6%.