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Obesity drugmakers Eli Lilly (NYSE:LLY) and Novo Nordisk (NVO) traded higher in the premarket on Friday after The Washington Post reported that the Trump Administration plans to cover weight loss drugs for some Medicare and Medicaid enrollees under a five-year experimental program.
According to a document obtained from the U.S. Centers for Medicare and Medicaid Services, the state Medicaid programs and Medicare Part D plans could voluntarily offer coverage for Novo’s (NVO) Ozempic and Wegovy and Eli Lilly’s (NYSE:LLY) Mounjaro and Zepbound.
The experiment comes at a time of mounting affordability concerns surrounding their highly popular GLP-1 drugs, indicated for both diabetes and weight loss.
The program, conducted through a testing lab called the Center for Medicare and Medicaid Innovation (CMMI) is expected to begin in April 2026 for Medicaid and January 2027 for Medicare plans.
When asked about comments, a CMS spokesperson said, “All drug coverages undergo a cost-benefit review. CMS does not comment on potential models or coverage.”
The proposal isn’t finalized, and the CMS can—but is not required to—subject it to a formal process where it seeks public comments about the program before finalizing it.