** Shares of drugmaker Eli Lilly LLY.N rise 2% to $755 premarket

** The Trump administration is planning to cover weight-loss drugs under Medicare and Medicaid, the Washington Post reports

** The proposed plan would permit state Medicaid programs and Medicare Part D insurance plans to voluntarily cover GLP-1 drugs such as Novo Nordisk's NOVOb.CO Ozempic and Wegovy, as well as Lilly's Mounjaro and Zepbound for weight management, the report said

** The proposed plan is expected to start in April 2026 for Medicaid and January 2027 for Medicare plans, WaPo reports citing documents

** The Centers for Medicare & Medicaid Services, Eli Lilly and Novo Nordisk did not immediately respond to Reuters requests for comment

** Up to last close, LLY down 4.1% YTD

(Reporting by Sneha S K)

((Sneha.SK@thomsonreuters.com;))