The Trump administration has announced significant agreements with pharmaceutical giants Eli Lilly and Novo Nordisk aimed at drastically reducing the prices of popular obesity drugs and expanding Medicare coverage for these treatments. These deals promise lower out-of-pocket costs for millions of Americans, with some oral medications potentially available for as little as $149 per month.
Key Takeaways
- Lower Prices: Certain injectable GLP-1 medications will see prices reduced, with oral versions potentially costing $149 per month.
- Medicare Coverage: Eligible Medicare enrollees will have access to these drugs with a copay as low as $50 per month.
- TrumpRx Launch: A new direct-to-consumer website, TrumpRx.gov, will offer discounted medications starting in early 2026.
- Broader Access: The deals aim to make these life-changing treatments more accessible to individuals with obesity and related health conditions.
Landmark Agreements with Drugmakers
President Donald Trump revealed the agreements with Eli Lilly and Novo Nordisk, highlighting them as a major step in the administration’s effort to combat chronic disease. The deals are expected to bring down the cost of blockbuster GLP-1 medications, such as Wegovy and Zepbound, which have seen soaring popularity for their effectiveness in weight management.
Under the new arrangements, consumers purchasing injectable GLP-1 medications directly through the companies will see prices decrease over the next two years. For oral GLP-1 tablets, pending FDA approval, the lowest dose is slated to cost $149 per month. These reduced prices will be available through the upcoming TrumpRx website, scheduled to launch in early 2026.
Expanded Medicare and Medicaid Access
A significant aspect of the announcement is the expansion of Medicare coverage for certain obesity drugs. Eligible Medicare enrollees with specific medical conditions, including those who are overweight with prediabetes or cardiovascular disease, or have obesity with diabetes or uncontrolled high blood pressure, will benefit. These individuals can expect a copay of $50 per month for approved GLP-1 medications. This move reinterprets existing statutes to allow coverage for obesity as a chronic disease, a departure from previous administration efforts.
Additionally, Eli Lilly and Novo Nordisk have agreed to lower prices for their medications for state Medicaid programs. While the exact timing depends on state-level negotiations, this aims to provide more affordable options for a wider population.
A “War on Chronic Disease”
Health and Human Services Secretary Robert F. Kennedy Jr. lauded the deals as a critical component of a “war on chronic disease,” emphasizing that obesity is a primary driver of many health issues. Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz projected significant weight loss among Americans due to this expanded access, linking it to improved health outcomes and reduced healthcare costs.
The administration also noted that these agreements were reached through voluntary price reductions in exchange for incentives, such as breaks on tariffs and expedited regulatory review, rather than through mandates like the “Most Favored Nation” pricing policy.
The announcement was briefly interrupted by a medical emergency involving a Novo Nordisk executive, but officials confirmed the individual was unharmed. The deals represent a significant policy shift, aiming to make advanced obesity treatments more affordable and accessible to millions of Americans.
Sources
- Obesity drugs: Certain drugs will cost as little as $149 and Medicare will start covering them under White
House deals, CNN. - Trump, Eli Lilly, Novo Nordisk unveil deals to cut obesity drug prices, CNBC.
- Trump announces deal to sell some weight loss drugs for as low as $150 on TrumpRX, WBFF.
- Trump announces deal to lower weight loss drug prices in some cases, KGW.
- ‘Americans will lose 135 billion pounds by the midterms’: White House announces deal to slash costs of obesity drugs, Read Lion.