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The Trump administration has decided not to back a Biden administration plan that would have allowed Medicare to pay for obesity drugs, according to a report from Bloomberg. Shares of both Eli Lilly (LLY) and Novo Nordisk (NVO) traded lower on the news. Learn more in the video above.
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All right, well, headline just coming across in the last few minutes. Bloomberg reporting the Trump administration will drop the Biden era Medicare obesity drug coverage proposal. In late November, the Biden administration proposed a rule that would have made millions of Americans with obesity eligible to have popular weight loss drugs like Wegovy or Zepbound covered by Medicare or Medicaid. Now, according to Bloomberg, the Centers for Medicare and Medicaid Services could reconsider coverage of the drugs in the future, but HHS Secretary Robert Kennedy Jr. is an opponent of weight loss drugs, and shares of both Eli Lilly and Novo Nordisk are under pressure in after-hours trading. Not exactly the headlines those companies wanted to see after the week that we've seen in the markets overall.
