Eli Lilly (LLY, Financial) stocks rose more than 5% on Tuesday after the White House suggested potential Medicare and Medicaid coverage for obesity drugs like Wegovy, Ozempic, and Mounjaro. The proposed rule aims to reclassify these medications as treatments for obesity, noting that related conditions such as diabetes and heart disease are already covered under the programs.
If planned to be effective from 1 January 2026, the policy could open access to millions of new patients, while the total cost for combined stakeholders would be $39.6 billion, which is an estimated time of over a decade. For the same reasons, focusing on the fact that CMS has stressed the importance of recognizing obesity for being a chronic condition, treatment via these drugs will be possible under the government-backed plans.
The White House report on the affair painted a picture of significant or even potential slashing of the costs, especially regarding patient bills, with the exalt enshrining prospect of cutting prices by half or even 95 percent as the pharmaceutical market is liberalized. Fluctuating costs today mean that a month's supply's average cost may exceed the $1,000 mark. Officials also believe that wider access will also offset future healthcare costs by decreasing risks associated with obesity.
This will ensure public feedback, which will help healthcare professionals consider the proposal when developing it. Should the policy be approved, it could radically transform the market of weight-loss drugs to the benefit of pharmaceutical companies while posing concerns about the funding of federal health care programs.
