Eli Lilly's popular obesity drug Zepbound can now be covered by government-backed Medicare drug plans, the Centers for Medicare & Medicaid Services said on Wednesday.

Zepbound in December became the first drug approved in the U.S. for sleep apnea, but commercial insurers and employers had so far hesitated to cover the drug due to its high cost.

The CMS also said obesity medications that receive approval for use in another disease can get coverage under Medicare plans for adults aged 65 and older and those with disabilities.