Popular Eli Lilly weight-loss drug Zepbound can be covered by Medicare plans to treat sleep apnea after it received Food and Drug Administration approval last month.

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.

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.

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%.

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.

The FDA has approved Zepbound (tirzepatide) for the treatment of moderate to severe obstructive sleep apnea in adults with obesity.

Both Novo Nordisk and Eli Lilly are studying their weight loss drugs to treat fatty liver disease, chronic kidney disease, sleep apnea and more. To be covered, these drugs would need to have late-stage trial results and then seek FDA approval for these uses.