The Biden administration is proposing a major expansion of how Medicare and Medicaid cover the weight-loss drugs Wegovy and Zepbound.

In its announcement, the Biden administration called anti-obesity medicines “life-saving drugs,” noting that they can also prevent diabetes.

U.S. President Joe Biden on Tuesday proposed expanding coverage of anti-obesity drugs, like Novo Nordisk's Wegovy, for more than 7 million people with Medicare and Medicaid health coverage, which could cut out-of-pocket expenses for some by as much as 95%.

Millions of Americans with obesity would be eligible to have popular drugs used for weight loss like Wegovy or Ozempic covered by Medicare and Medicaid under a new rule the Biden administration proposed Tuesday morning.