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.

This may be the first Thanksgiving for millions of Americans who are on GLP-1 agonists like Ozempic, Zepbound or Wegovy.

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

There is some debate as to whether GLP-1 agonist drugs like Wegovy can lead to unhealthy muscle mass loss in addition to general weight loss. Is this a real concern, and if so, how can a person maintain their muscle mass on GLP-1 drugs?

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

Amgen's experimental drug MariTide led to an average weight loss of up to 20% in a year-long mid-stage trial of nearly 600 people who were overweight or obese, the company said on Tuesday.

The Biden administration wants to expand coverage of anti-obesity medications to millions on Medicare, Medicaid.