The Trump administration revealed significant agreements on Thursday with leading pharmaceutical companies Novo Nordisk and Eli Lilly aimed at reducing the cost of GLP-1 drugs for millions of Americans, particularly those enrolled in Medicare. These negotiations focus on ensuring that both the government and consumers pay less for medications used to treat obesity, diabetes, and various cardiometabolic conditions.
With the upcoming launch of the public-private partnership TrumpRx, patients will soon pay approximately $350 for a month's supply of these injectable GLP-1 drugs. Senior administration officials indicated that this price is expected to decrease to $250 over the next two years for individuals paying out-of-pocket without insurance. For those awaiting the FDA's approval of daily pill versions of the medication, initial prices are projected to start at $150 for the first doses.
During a press conference from the Oval Office, President Donald Trump expressed gratitude to the participating pharmaceutical companies and celebrated the agreements. He stated, "This is a triumph for American patients that will save lives and improve the health of millions and millions of Americans." Both Novo Nordisk and Eli Lilly are anticipated to introduce new GLP-1 pills next year, contingent on FDA approval.
The reported savings on the medications will significantly expand eligibility, allowing individuals with severe obesity—defined as having a body mass index (BMI) over 35—to access these drugs through Medicare. Medicare patients will face a co-pay of just $50 for the medications, with new pricing expected to roll out by mid-2026. However, coverage and pricing through Medicaid will vary by state and depend on their participation in the program.
At present, federal insurance programs only cover Novo Nordisk's Wegovy, which is prescribed for people who are overweight and have heart disease. Unfortunately, Medicare does not currently cover medications exclusively for obesity, and these drugs have rarely been covered by Medicaid. President Trump noted that many consumers have previously faced costs exceeding $1,000 per month for these medications, with Americans paying up to 520% more for Zepbound and 1,400% more for Wegovy compared to patients in Europe.
Under the new agreements, individuals classified as severely obese will have access to the GLP-1 medications for a $50 co-pay. However, it’s important to note that this does not provide broad coverage for all overweight or obese individuals, unlike many private insurance plans.
During the Oval Office announcement, a guest fainted, temporarily halting the press conference. Karoline Leavitt reported that the individual was a representative of one of the pharmaceutical companies and that the White House Medical Unit promptly intervened. Novo Nordisk later clarified that the fainting individual was not one of their executives, expressing hope for the person’s recovery.
This agreement marks another of the Trump's administration's most favored nations agreements with pharmaceutical companies, following the president's executive order in May that directed efforts to lower drug prices for Americans. Eli Lilly's chair and CEO, David A. Ricks, stated, "Today marks a pivotal moment in U.S. health care policy and a defining milestone for Lilly." He emphasized that the collaboration aims to enhance access to obesity treatments and improve health outcomes across the nation.
In a similar vein, Mike Doustdar, president and CEO of Novo Nordisk, remarked that this deal would greatly expand patient access and affordability, reinforcing the commitment to enhance healthcare for Americans.
