Certain Obesity Drugs to Cost as Little as $149 as Medicare Expands Coverage Under New White House Deals

The Trump administration has announced new deals with drugmakers Eli Lilly and Novo Nordisk that will dramatically lower the cost of certain blockbuster obesity drugs and expand Medicare access to millions of Americans. The agreements, revealed Thursday, mark one of the administration’s most significant efforts to address soaring prescription costs.

Under the new arrangements, some GLP-1 obesity medications will be available for as little as $149 per month. The drugmakers have also agreed to reduce list prices for Medicaid and match pricing to the lowest paid by peer nations. In return, they will receive tariff reductions on imported pharmaceutical products and faster regulatory reviews for select drugs.

Consumers buying injectable GLP-1 medications directly from the companies will initially pay around $350 per month, with prices expected to drop to about $250 within two years. If oral GLP-1 tablets are approved by the Food and Drug Administration, the lowest dose will start at $149. These lower prices will be available through the administration’s upcoming direct-to-consumer website, TrumpRx, set to launch in early 2026.

Medicare beneficiaries will also see lower costs. Eligible enrollees will pay a $50 monthly copay for GLP-1 drugs approved for both obesity and diabetes. The manufacturers have agreed to reduce Medicare’s cost for these medications to $245, allowing the program to expand coverage without raising expenses. The change is expected to take effect in mid-2026.

About 10% of Medicare enrollees will qualify under the new rules, which include individuals with obesity and diabetes, prediabetes, cardiovascular disease, or high blood pressure. Medicaid programs will also gain access to reduced pricing, depending on state negotiations.

Health and Human Services Secretary Robert F. Kennedy Jr. said the move could help reduce chronic disease and promote healthier lifestyles. “This is a tool in the toolkit. It is not a silver bullet,” Kennedy said. “It will allow a lot of people who are locked into high-risk obesity to finally lose weight, to reset, and then start doing the kind of things that address the root causes of obesity.”

The agreements also revive the “Most Favored Nation” pricing model, tying U.S. drug prices to those in other developed nations. Eli Lilly and Novo Nordisk’s new medications — including the oral Wegovy pill and Lilly’s orforglipron — have been selected for expedited FDA review and could reach the market as early as next year.

Doctors and obesity specialists have welcomed the news, saying the reduced costs could make life-changing medications accessible to patients who previously couldn’t afford them. “I think that will open it up to people who had dismissed the thought that they might ever be able to afford it,” said Dr. Kimberly Guzman, medical director of the American Board of Obesity Medicine.

Credit: CNN Newsource

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