The proposal would expand coverage of anti-obesity drugs to 7.5 million people covered by Medicare and Medicaid, the Biden administration said.

The stocks of companies that make the new class of drugs to treat obesity and manage diabetes were higher across the board early Tuesday, after the Biden administration proposed a rule that would allow Medicare or Medicaid to cover the expensive medications.

Weight loss drugs like Wegovy, Zepbound and Ozempic would be covered by Medicare and Medicaid under a Biden administration proposal.

While recent advances in medicine have created prescription anti-obesity GLP-1 medications — like Ozempic, Wegovy, and Mounjaro — accessibility to these drugs is limited. The average prescription costs $1,

The Biden Administration released plans for a new rule that would require Medicare and Medicaid to cover anti-obesity medications. But it's not clear if the proposed change will go into effect.