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,

Zepbound is a dual-activating medication that combines glucose-dependent insulinotropic polypeptide (GIP) and glucagon-like peptide-1 (GLP-1) mechanisms to tackle the root causes of obesity. It suppresses appetite and reduces caloric intake, making it particularly effective for individuals whose OSA symptoms are exacerbated by excess weight.

Eli Lilly's obesity drug Zepbound can now be covered by government-backed Medicare insurance plans for use in sleep apnea, broadening access to the blockbuster weight-loss treatment. The Wednesday statement from the Centers for Medicare & Medicaid Services comes after Zepbound in December became the first drug approved in the U.

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.

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.