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,

El Lilly’s (LLY) blockbuster weight-loss drug Zepbound is now eligible for Medicare coverage. The news could significantly expand access to the popular, yet costly 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.