Eli Lilly's obesity drug Zepbound can now be covered by government-backed Medicare insurance plans for use in sleep apnea, broadening access to the blockbuster weight-loss treatment. The Wednesday statement from the Centers for Medicare & Medicaid Services comes after Zepbound in December became the first drug approved in the U.

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.

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%.

El Lilly’s (LLY) blockbuster weight-loss drug Zepbound is now eligible for Medicare coverage. The news could significantly expand access to the popular, yet costly treatment.

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.