Trump administration announces deal to lower weight loss drug prices for many Americans

The Trump administration recently made headlines with two major deals with pharmaceutical giants Novo Nordisk and Eli Lilly that are set to lower the cost of GLP-1 drugs for many Americans, including those on Medicare. These drugs are primarily used to treat obesity, diabetes, and other cardiometabolic conditions.

Under the new deals, patients using the service will pay approximately $350 for a month’s supply of injectable drugs, with the price expected to decrease to $250 over the next two years for those paying completely out-of-pocket. Additionally, those using the daily pill versions of the drug will have prices starting at $150 for the initial doses once the pills are approved by the FDA.

Both Novo Nordisk and Eli Lilly are planning to release new GLP-1 pills next year, pending FDA approval. These new medications are expected to broaden the eligibility criteria for individuals seeking this type of treatment.

The government’s reported savings on the cost of these medications will allow more people to access the drug, including those with severe obesity under Medicare. Medicare patients will have a $50 co-pay for the drugs and could benefit from the new pricing as early as mid-2026. Medicaid pricing and availability will vary by state as they choose to opt in.

Currently, federal insurance programs cover Novo Nordisk’s Wegovy for individuals who are overweight and have heart disease, but there is no medication for obesity alone covered by Medicare. The new agreements will extend coverage to people with severe obesity, defined as a body mass index over 35, for a $50 co-pay. However, it does not offer broad coverage for all individuals who are overweight or obese like many private insurance plans do.

GLP-1 drugs typically cost around $500 out-of-pocket for individuals without insurance. These deals are part of the Trump administration’s “most favored nations” agreements with pharmaceutical companies, following an executive order signed by the president in May to reduce drug prices for Americans.

Both Eli Lilly and Novo Nordisk have expressed their enthusiasm for the new agreements, highlighting the expanded patient access and affordability that will result from these deals. The companies are hopeful that these initiatives will improve health outcomes, strengthen the healthcare system, and benefit the health of the nation for years to come.