Novo Nordisk’s (NVO) weight loss drug Wegoby will be covered by Medicare and Medicaid. This decision was made considering the drug’s proven health benefits associated with reducing the risk of heart disease. However, insurance through these healthcare providers is only granted to individuals who utilize Her Wegovy for the purpose of managing heart-related conditions.

Yahoo Finance Health reporter Anjalee Khemlani has the details.

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Editor’s note: This article was written by angel smith

video transcript

[AUDIO LOGO]

Rachel Akuffo: Both Medicare and Medicaid will now offer coverage for the popular weight loss drug Wegoby, but only to people with heart-related heart disease-related conditions who may need to take the drug. Let Yahoo Finance’s Anjalee Khemlani tell you the details. Interesting development, Anjali.

Anjali Khemrani: Yes, Rachel, and of course the investors knew that Novo Nordisk had done this study in heart disease, and they were looking forward to it. When we got approval from the FDA, it really opened the door for CMS to cover this. Now, Medicare Part D will cover the drug for people prescribed it for heart disease. If you remember, the FDA actually expanded the label for Novo Nordisk’s weight loss drug, Wegoby, because it showed he had a 20% reduction in heart disease.

So, naturally, the door for an interview opened. To cover this, state-level Medicaid will also be required in the future. This is due to his guidance from CMS, which sent a statement to Yahoo Finance stating that Part D coverage is not yet available for weight management. Therefore, it is not yet available to those who want to use it for its intended purpose. However, for this reason it is now possible to use it.

So what impact does this have on the $100 billion market forecast by the end of 2020? Well, Mizuho analysts say it’s actually only reinforcing that stance. There is. So Jared Holt said in his quote, “I don’t think the Street will significantly change its forecast for the near term, but the gulf between supply and demand remains incredibly pronounced.” . So what we’re currently working on is increasing the use of this drug. However, there are still supply issues. In addition to Wegovy, Eli Lilly’s zepbound has also been found to be in high demand after approval. And it looks like it’s still going on.

Other studies are currently underway, and Eli Lilly also has a heart study in the works. It is scheduled to be completed by the end of this summer. Now let’s start reading. This is likely to follow. That bodes well for Lily as well. Meanwhile, the companies are also researching liver and kidney diseases, sleep apnea, and potential addiction. Some people support it. So really, the story just continues.

Rachel Akuffo: surely. And that demand is certainly not going anywhere. Thank you for your detailed explanation. Our very own Anjali Khemrani.