Core Viewpoint - The Trump administration is considering a five-year pilot program to include GLP-1 weight loss drugs like Wegovy, Ozempic, Zepbound, and Mounjaro in Medicare and Medicaid reimbursement, marking a significant policy shift from the Biden administration's earlier stance [1][3]. Group 1: Policy Changes - The proposed pilot program will allow federal insurance programs to reimburse for weight loss medications, which have shown to reduce body weight by 15% to 20% in clinical trials [3]. - The pilot for Medicaid is set to start in April 2026, while the Medicare pilot is expected to begin in January 2027 [6]. Group 2: Financial Implications - The annual cost of these medications ranges from $5,000 to $7,000, raising concerns about the long-term affordability for state and federal governments [3]. - Analysts believe this policy shift will benefit companies like Novo Nordisk and Eli Lilly, with their stock prices rising by over 3% and 2% respectively following the news [1]. Group 3: Market Reactions - Bernstein analysts predict that the development will be favorable for Eli Lilly, especially if their oral weight loss drug receives regulatory approval and is included in the pilot program [12]. - In contrast, the stock price of telehealth platform Hims & Hers Health fell by 6%, as broader public insurance coverage for GLP-1 drugs may reduce demand for their alternative medications [12].