Aug 1 (Reuters) - The Trump administration is planning

an experiment to cover weight-loss drugs under Medicare and

Medicaid, the Washington Post reported on Friday, citing

documents from the Centers for Medicare and Medicaid Services.

GLP-1 drugs, originally developed for type 2 diabetes, have

gained popularity for their ability to reduce body weight by

suppressing appetite and slowing digestion. But their high cost

- typically between $5,000 and $7,000 per year - has raised

concerns about long-term affordability.

The proposed plan would permit state Medicaid programs and

Medicare Part D insurance plans to voluntarily cover GLP-1

drugs, including those from market leaders Novo Nordisk

and Eli Lilly ( LLY ), the report said.

Lilly and Novo are leaders in the weight-loss drug market,

which some analysts expect could bring in more than $150 billion

in revenues by the next decade. Lilly's shares were up nearly 2%

in premarket trading.

The initiative is slated to begin in April 2026 for Medicaid

and January 2027 for Medicare. If it clears the way, it would

mark a shift in federal policy after the administration said

earlier this year that the programs would not cover weight loss

drugs.

A proposal under the Biden administration had also aimed to

expand access to the medications.

The Centers for Medicare & Medicaid Services, Lilly and Novo

did not immediately respond to a Reuters request for comment.