The U.S. Centers for Medicare and Medicaid Services indefinitely delayed the Better Approaches to Lifestyle and Nutrition for Comprehensive Health (BALANCE) model for covering obesity drugs under Medicare Part D, after plans signaled they would not participate. CMS instead extended a temporary “Medicare GLP-1 Bridge” demonstration through the end of 2027. The move keeps Medicaid BALANCE coverage on track for participating states, but leaves Medicare beneficiaries uncertain about when coverage will broaden. Drugmakers had previously tied the program’s design to lower patient costs in exchange for insurer participation. For biotech and pharma, the delay is a near-term demand and reimbursement headwind for GLP-1-based therapies—especially for sales projections that depend on Medicare eligibility expansion.