(Reuters) -The Trump administration is planning an experiment to cover weight-loss drugs under Medicare and Medicaid, the Washington Post reported on Friday, citing documents from the Centers for Medicare and Medicaid Services.
GLP-1 drugs, originally developed for type 2 diabetes, have gained popularity for their ability to reduce body weight by suppressing appetite and slowing digestion. But their high cost — typically between $5,000 and $7,000 per year — has raised concerns about long-term affordability.
The proposed plan would permit state Medicaid programs and Medicare Part D insurance plans to voluntarily cover GLP-1 drugs, including those from market leaders Novo Nordisk and Eli Lilly, the report said.
Lilly and Novo are leaders in the weight-loss drug market, which some analysts expect could bring in more than $150 billion in revenues by the next decade. Lilly's shares were up nearly 2% in premarket trading.
The initiative is slated to begin in April 2026 for Medicaid and January 2027 for Medicare. If it clears the way, it would mark a shift in federal policy after the administration said earlier this year that the programs would not cover weight loss drugs.
A proposal under the Biden administration had also aimed to expand access to the medications.
The Centers for Medicare & Medicaid Services, Lilly and Novo did not immediately respond to a Reuters request for comment.
(Reporting by Surbhi Misra in Bengaluru and Kamal Choudhury; Editing by Sharon Singleton and Shinjini Ganguli)
