Popular Eli Lilly weight-loss drug Zepbound can be covered by Medicare plans to treat sleep apnea after it received Food and Drug Administration approval last month.

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.

Zepbound is not covered by Medicare or many other insurance plans as a treatment for weight loss. The injectable treatment costs about $1,000 a month without insurance.

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.

The agency’s decision expands the use of Zepbound and could potentially pave the way for Eli Lilly to gain broader insurance coverage for the treatment.

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.

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%.