The Trump administration finalized new Medicare and Medicaid policies late Friday, but left out a key provision that would have expanded coverage for weight-loss drugs. In response, Eli Lilly stock skidded.
As outlined by the Centers for Medicare and Medicaid Services, Medicare Advantage will not pay for the cost of anti-obesity medications. The Biden administration previously attempted to have Medicare Part D and Medicaid cover weight-loss drugs. The move would have massively expanded access, likely even helping push commercial insurance coverage.
New Health Secretary Robert F. Kennedy Jr. has been skeptical of weight-loss drugs, instead preferring nutrition and exercise to help control obesity and type 2 diabetes. But proponents say covering anti-obesity drugs could help curb future — and rising — costs associated with chronic illnesses.
The news is a blow for Eli Lilly and Novo Nordisk, which sell blockbuster weight-loss drugs Zepbound and Wegovy, respectively. Eli Lilly stock toppled 2.9% to 717.01, adding to a 6.45% loss during the regular session. Novo Nordisk shares slipped 1.4% to 61.65, following a 6.8% regular-session dive.
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