Trump strikes deal with Eli Lilly, Novo Nordisk

A significant breakthrough has been achieved in making weight loss treatments more accessible and affordable for millions of Americans. President Donald Trump has announced landmark agreements with pharmaceutical giants Eli Lilly and Novo Nordisk to substantially reduce the prices of their blockbuster weight loss drugs. This move is expected to make a considerable impact on the lives of individuals struggling with obesity and related health issues.

The agreements will lead to a significant reduction in the monthly out-of-pocket costs of popular injections and upcoming pills, ranging from $50 to $350, depending on the dosage and insurance coverage. Currently, existing GLP-1s, including Eli Lilly’s obesity injection Zepbound and Novo Nordisk’s competitor Wegovy, have list prices above $1,000 a month, making them unaffordable for many patients. Both companies have introduced lower-cost options for people paying in cash and purchasing the drugs directly through their websites, but these new deals will further expand access to these life-changing treatments.

Medicare Coverage

Medicare has covered GLP-1 drugs for diabetes and certain other medical conditions, such as Wegovy for slashing cardiovascular risks. However, under the new agreements, Medicare will start covering these drugs for obesity for the first time, beginning in mid-2026. This expansion of coverage could enable more seniors to qualify for these treatments and encourage private insurers to follow suit. Certain Medicare patients will pay a copay of $50 per month for all approved uses of GLP-1 drugs, including diabetes and obesity treatment.

To be eligible for GLP-1s for obesity and cardiovascular and metabolic benefits under Medicare, patients must fall into one of three cohorts: those who are overweight with a body mass index (BMI) greater than 27 or have prediabetes or established cardiovascular disease; individuals with obesity (BMI greater than 30) and uncontrolled hypertension, kidney disease, or heart failure; and patients with severe obesity (BMI greater than 35). Eli Lilly and Novo Nordisk have voluntarily agreed to reduce the prices the government pays for existing GLP-1 drugs already approved for diabetes and other uses to $245 a month, across all non-starting doses.

Direct-to-Consumer Platforms

The agreements will also introduce steeper discounts for patients purchasing GLP-1s on direct-to-consumer platforms. On the government’s direct-to-consumer platform, TrumpRx, which is expected to launch next year, the average monthly cost for Wegovy, Zepbound, and other injectable GLP-1s will start at $350 and decrease to $250 within the next two years. Starting doses of upcoming obesity pills from Eli Lilly and Novo Nordisk, pending approvals, will be $149 per month on TrumpRx, Medicare, and Medicaid.

Eli Lilly has announced that it will lower prices by $50 on its direct-to-consumer platform, LillyDirect, which already offers Zepbound and other drugs at a discount to cash-paying patients. The multidose pen of Zepbound will be available for $299 per month at the lowest dose, with additional doses priced up to $449 per month. Once approved, Eli Lilly’s pill will be available at the lowest dose starting at $149 per month.

Medicaid Coverage

Currently, state Medicaid coverage of GLP-1 drugs for obesity is inconsistent. However, Novo Nordisk and Eli Lilly have agreed to extend lower government pricing for their GLP-1 drugs – $245 per month across all other non-starting doses – to all 50 Medicaid programs for all covered uses. States will need to opt into these prices, so coverage may vary. It is essential for individuals to check with their state government regarding specific coverage details.