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 drug plans can now cover Eli Lilly's blockbuster obesity drug Zepbound for obstructive sleep apnea, the Centers for Medicare & Medicaid Services confirmed to CNBC.

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 drug plans can now cover Eli Lilly & Co.'s obesity drug Zepbound as a treatment for obstructive sleep apnea, news that's expected to prove a big boost for the drug company.