Medicare to Cover Obesity Drugs for First Time via Bridge Program at $50/month

Key Facts

In a significant shift in U.S. healthcare policy, Medicare will begin covering obesity drugs for the first time starting Wednesday through a temporary program called Bridge, with a monthly copay of $50, according to CNBC. The decision covers popular GLP-1 drugs such as Wegovy and Mounjaro, which were previously excluded under a federal rule barring coverage of weight-loss medications. The expansion is expected to dramatically broaden the patient base, as Medicare serves approximately 65 million seniors.

Medicare had been barred by a 2003 law from covering obesity medications, but the Centers for Medicare & Medicaid Services (CMS) carve-out represents a landmark exception. Per market data, Eli Lilly (LLY) closed at $1,229.93 (June 29, 2026), while Novo Nordisk (NVO) closed at $48.34. Analysts estimate the addressable market from Medicare alone could add $10–15 billion annually, directly benefiting both drugmakers.

Technically, LLY is trading near its intraday high of $1,238, while NVO is range-bound above $48. Forward catalysts include potential clinical trial readouts or expanded coverage for other agents. Investors are also watching competitive responses from players like Amgen, which is developing a rival GLP-1 therapy.