WASHINGTON - The Trump administration is planning an experiment to cover weight-loss drugs under Medicare and Medicaid, the Washington Post reported on Aug 1, citing documents from the Centers for Medicare and Medicaid Services.

GLP-1 drugs, originally developed for type 2 diabetes, have gained popularity for their ability to reduce body weight by suppressing appetite and slowing digestion. But their high cost – typically between US$5,000 (S$6,490) and US$7,000 per year – has raised concerns about long-term affordability.

The proposed plan would permit state Medicaid programs and Medicare Part D insurance plans to voluntarily cover GLP-1 drugs, including those from market leaders Novo Nordisk and Eli Lilly, the report said.

Lilly and Novo are leaders in the weight-loss drug market, which some analysts expect could bring in more than US$150 billion in revenues by the next decade. Lilly’s shares were up nearly 2 per cent in premarket trading.

The initiative is slated to begin in April 2026 for Medicaid and January 2027 for Medicare. If it clears the way, it would mark a shift in federal policy after the administration said earlier this year that the programs would not cover weight loss drugs.

A proposal under the Biden administration had also aimed to expand access to the medications.

The Centres for Medicare & Medicaid Services, Lilly and Novo did not immediately respond to a Reuters request for comment. REUTERS