Eli Lilly, Novo Nordisk Stocks Gain as Biden Moves to Expand Coverage of Weight-Loss Drugs | Global News Avenue

Eli Lilly and Company (Li Lai) and Novo Nordisk (non-governmental organization) shares rose on Tuesday after the Biden administration proposed expanding coverage of the company’s popular weight-loss drugs under government-backed health plans, including Medicare and Medicaid.

Current rules restrict weight loss drugs from being included in the scheme, and the proposed changes would classify drugs such as Ozempic and Mounjaro as obesity treatments on the grounds that it could lead to conditions such as diabetes and heart disease. what is covered According to the rules.

New classification makes Ozempic and Mounjaro more accessible

Changing the classification will make these popular drugs available to millions of new patients in the United States starting in 2026 and increase costs for government health care programs. Over the course of 10 years, Centers for Medicaid and Medicare Services (CMS) The change is estimated to cost Medicare (Medicare) $24.8 billion and Medicaid (Medicaid) $14.8 billion.

CMS said the change was prompted by growing recognition that obesity is a chronic health condition and the health risks posed by other problems it can cause. The proposal will be open to public comment for medical professionals to provide input to lawmakers on the proposal, new york times reported on Tuesday.

The White House said the rule could reduce the cost of these drugs, which can cost more than $1,000 a month to supply, by as much as 95%. Officials said they also expect drug prices to fall over time More drugs heading into space and competition intensifiesthis era reported.

Shares of Eli Lilly rose nearly 6% on Tuesday after the news broke, while Novo Nordisk’s U.S.-listed shares rose 2%.