Trump Administration Secures Deals to Lower Weight-Loss Drug Prices and Expand Medicare Coverage
The Trump administration finalized deals with Novo Nordisk and Eli Lilly, significantly lowering weight-loss drug costs and expanding Medicare coverage for eligible patients with reduced copays.
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Overview
- The Trump administration announced deals with pharmaceutical giants Novo Nordisk and Eli Lilly to significantly lower the cost of popular weight-loss drugs for many Americans.
- Prices for injectable GLP-1 drugs like Wegovy and Zepbound will initially be around $350 per month, scaling down to $250 over the next two years.
- Medicare will now cover obesity drugs for patients with severe obesity and serious health issues, with eligible beneficiaries facing a $50 copay for certain medications.
- Some drugs, including Eli Lilly's orforglipron, will be available for as low as $149 for the lowest dose, with Zepbound's starting dose set at $299.
- Lower prices will be available in January for direct-pay customers, and in July for Medicare, Medicaid, and employer-sponsored insurance programs via TrumpRx.
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Analysis
Center-leaning sources cover this story neutrally by presenting Trump's announcement with factual details and important contextual information. They avoid loaded language and provide a balanced perspective by including the Biden administration's prior efforts on similar drug coverage and noting the Trump administration's omission of a cost estimate. This approach allows readers to form their own conclusions based on comprehensive reporting.
"The deal will expand patient access and affordability for obesity medications, marking a pivotal moment in U.S. health care policy."
ABC News"The deals will expand Eli Lilly and Novo Nordisk's access to Medicare and Medicaid, the government's public healthcare plans for elderly and low-income Americans."
BBC News"The negotiated deals will allow Medicare and Medicaid coverage for Lilly's Zepbound and Novo's Wegovy, and consumers will be able to purchase drugs at discounted prices through the federal government's direct-to-consumer website, TrumpRx, which will launch in 2026."
USA TODAY"The agreements could make the popular treatments more affordable for millions who have struggled to access them — although experts say it remains unclear who would immediately benefit, since some of the drugs are already covered for Medicare patients with certain medical conditions and the new costs remain high for many patients."
NBC News"The effort to lower costs barriers to popular GLP-1 drugs comes as the White House is looking to demonstrate that Trump is in touch with Americans’ frustrations with rising costs for food, housing, health care and other necessities."
Associated Press"If finalized, it would be the most significant agreement to emerge from President Donald Trump’s efforts to lower prescription drug prices to align more closely with other developed nations."
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FAQ
The deal covers Novo Nordisk's Wegovy (starting at $149 for the lowest dose) and Eli Lilly's Zepbound (starting at $299 for the starting dose). Some drugs, such as Eli Lilly’s orforglipron, will be available for as low as $149 for the lowest dose. The average price for injectable and oral medications through TrumpRx will initially be around $350 per month, trending down to $245 over two years.
Medicare will now cover obesity drugs for patients with severe obesity and serious health issues, with eligible beneficiaries facing a $50 copay for certain medications. Lower prices will be available in July for Medicare, Medicaid, and employer-sponsored insurance programs via TrumpRx. Direct-pay customers can access the lower prices starting in January.
In exchange for lower prices across government programs and direct-to-consumer sales, the drugmakers received 'certainty around tariff issues,' which may include exemptions from tariffs for those investing in domestic manufacturing. They also agreed to provide most favored nation pricing for all their medications to Medicaid and for new medicines brought to market under the deal. Additionally, the FDA is expected to grant national priority review vouchers to speed up approval of new weight-loss medications.
The list price for these drugs currently ranges from about $1,000 to $1,350 per month, though actual patient costs depend on insurance and discounts. The new deals will lower the price for many Americans to around $149–$350 per month, depending on the drug and dose, representing a significant reduction from current market rates.
While the drugs will be available to direct-pay customers starting in January, Medicare coverage is limited to patients with severe obesity and serious health issues. Medicaid coverage will also be expanded, but eligibility details for Medicaid and employer-sponsored plans are not yet fully specified. The broadest access is via direct purchase, with public insurance coverage targeted to those with significant medical need.
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