The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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.
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Sign InMedicare 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.