Key Takeaways Eli Lilly's Zepbound can be covered by Medicare Part D plans after the FDA approved the drug as a treatment for sleep apnea last month.Weight loss drugs like Zepbound and Novo Nordisk's Ozempic aren't covered under Medicare,

Eli Lilly’s obesity drug Zepbound is now covered by Medicare for sleep apnea treatment, expanding access to the costly medication. This comes after Zepbound’s FDA approval for a secondary use, allowing Medicare coverage.

Zepbound is not covered by Medicare or many other insurance plans as a treatment for weight loss. The injectable treatment costs about $1,000 a month without insurance.

El Lilly’s (LLY) blockbuster weight-loss drug Zepbound is now eligible for Medicare coverage. The news could significantly expand access to the popular, yet costly treatment.

Medicare now covers Eli Lilly's Zepbound for obstructive sleep apnea, FDA-approved for obesity and sleep apnea treatment, reducing apnea events by 62.8%.

According to BMO Capital Markets, Medicare coverage of Lilly’s Zepbound opens the door to using secondary indications to secure CMS coverage for obesity drugs.

The Food and Drug Administration approved Eli Lilly’s weight-loss drug Zepbound on Dec. 27 to treat sleep apnea, a common but potentially serious sleep-related breathing disorder, making it the first medication for certain patients with the condition.

Terence Flynn, Biotech Analyst at Morgan Stanley, discusses Eli Lilly's recent stock boost and its designation as Morgan Stanley's top pick for 2025. He highlights the robust growth potential of Eli Lilly's drug Zepbound,