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.

The Biden administration proposed a rule for Medicare and Medicaid to cover the costs of weight-loss drugs for millions of Americans with obesity.

The plan would need to be supported by the incoming Trump administration, which has vowed to cut costs across the federal government.

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

Millions of Americans would be eligible to have costly weight-loss drugs like Wegovy or Ozempic covered by Medicare or Medicaid under the rule.

The Biden administration called for Medicare and Medicaid to cover popular drugs that help people lose weight but are not affordable for many Americans who might benefit from them. NBC News' Stephanie Gosk reports.

The Biden administration is proposing a rule that would require the US government to cover obesity drugs for millions of Americans, teeing up a financial and political challenge for President-elect Donald Trump as he prepares to take office.

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