Medicare Approves Eli Lilly's Zepbound for Sleep Apnea

Eli Lilly's obesity drug Zepbound, also known as tirzepatide, has been approved for Medicare coverage for treating obstructive sleep apnea in adults with obesity, following its recent FDA approval for this specific use. This decision could significantly widen access to Zepbound, which has faced coverage challenges due to its high cost. Medicare Part D plans can now include Zepbound in their formularies, provided it is used for this newly approved medical indication, although prior authorization might be required. The new coverage aligns with a broader initiative by the Biden-Harris administration to expand access to anti-obesity medications through Medicare and Medicaid, potentially reducing out-of-pocket costs for millions. Eli Lilly's Zepbound could tap into a $100 billion market opportunity, further bolstered by its inclusion in government-backed insurance plans. The drug was shown to significantly reduce apnea-hypopnea index scores in clinical trials, demonstrating its efficacy in treating sleep apnea.