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GLP-1 Drug Stocks Risk: Medicare Deals vs. 2026 Coverage Exclusion

Kavout

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This episode offers conflicting reports regarding the Trump administration's policy on Medicare coverage for GLP-1 drugs used for weight loss. The first source, an article from Investopedia dated November 2025, claims that a new plan would cover popular drugs like Ozempic and Wegovy for Medicare patients for as little as $50 a month, due to negotiated lower prices with pharmaceutical companies. Conversely, the second source, a Pharmaceutical Technology article from April 2025, states that the CMS finalized its 2026 policy under the Trump administration by declining to expand Medicare coverage for these anti-obesity medications, abandoning a prior Biden administration proposal. Both reports highlight the significant financial stakes for drug manufacturers like Eli Lilly and Novo Nordisk, noting drops in their stock prices following policy announcements. The second source also mentions opposition from payer groups concerned about the excessive costs of the drugs.

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