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.

It opens the door for broader coverage and access to Zepbound, which is not currently covered by Medicare and many other insurance plans for weight loss.

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%.

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.

By aiding weight loss, Zepbound can improve symptoms of obstructive sleep apnea (OSA) in people with obesity — but CPAP machines remain the first-line treatment.

The FDA has approved Zepbound (tirzepatide) for the treatment of moderate to severe obstructive sleep apnea in adults with obesity.

Both Novo Nordisk and Eli Lilly are studying their weight loss drugs to treat fatty liver disease, chronic kidney disease, sleep apnea and more. To be covered, these drugs would need to have late-stage trial results and then seek FDA approval for these uses.