Trump weight loss drug price cuts: Eli Lilly, Novo Nordisk agree to lower obesity drug costs, expand Medicare coverage

WASHINGTON — President Donald Trump on Thursday announced new agreements with pharmaceutical giants Eli Lilly and Novo Nordisk to slash the prices of their blockbuster weight loss medications, in what the administration called a landmark step to make obesity treatments affordable.

The Trump weight loss drug price cuts will lower costs for Medicare and Medicaid patients beginning in 2026 and introduce discounted prices to all Americans through a new federal website, TrumpRx.gov, launching in January.

“This is a historic day for American healthcare,” Trump said at the White House. “For the first time, Medicare will help cover obesity drugs, and Americans will pay fair, transparent prices.”

The new initiative marks a dramatic policy shift. Medicare which serves around 66 million Americans has never covered weight loss medications, despite growing demand for GLP-1 drugs such as Wegovy and Zepbound.

Under the Trump weight loss drug price cuts, eligible Medicare patients will pay a $50 monthly copay for approved GLP-1 drugs used for obesity and diabetes. 

Starting doses of upcoming obesity pills from Eli Lilly and Novo Nordisk, pending FDA approval, will be priced at $145 per month for all beneficiaries under Medicare, Medicaid, or TrumpRx.

Existing injectables like Wegovy and Zepbound will cost $350 per month initially, dropping to $245 per month over two years, officials said.

“These treatments have changed lives, but their prices have been out of reach,” said Health and Human Services Secretary Robert F. Kennedy Jr. “This initiative ensures Americans will pay some of the lowest prices in the world for GLP-1 drugs.”

Experts say the move could transform the obesity drug market and accelerate coverage expansion across the insurance sector.

Dr. Marcia Levin, a health economist at Johns Hopkins University, said the plan “sets a new precedent” for US drug pricing. “By tying costs to global benchmarks, the Trump administration is essentially forcing price competition for drugs that have dominated the market at sky high rates,” she said.

Novo Nordisk’s oral version of Wegovy could debut by year’s end, while Eli Lilly’s new pill orforglipron is expected in 2026. Both drugs received priority FDA review this week, fast tracking potential approvals.

Before the Trump weight loss drug price cuts, GLP-1 drugs cost $1,000 to $1,350 per month in the US among the highest prices globally.

The U.S. spends roughly $173 billion annually on obesity related conditions such as heart disease, diabetes, and sleep apnea. Officials say expanded access could reduce those costs significantly by improving preventive care.

Around 10% of Medicare beneficiaries will be eligible for the new GLP-1 coverage under a pilot program. Eligibility will include people with a BMI above 27 who also have prediabetes or cardiovascular disease.

“The long term impact on public health could be substantial,” said Dr. Sanjay Patel, a policy analyst at the University of Michigan. “This could be the moment the US turns obesity management into mainstream healthcare.”

For many Americans, the change is deeply personal. “I’ve been paying over $1,000 every month for Wegovy,” said Linda Graves, 62, of Ohio. “With Medicare covering it for $50, I can finally stay on my treatment without choosing between my health and my bills.”

Dr. Harold Nguyen, a Los Angeles pharmacist, welcomed the move but cautioned that Medicaid participation will vary. “States have to opt in, so not every patient will see these prices right away,” he said.

Eli Lilly said it “fully supports the effort to expand access responsibly,” while Novo Nordisk called the partnership “a significant milestone in the national obesity response.”

The Trump weight loss drug price cuts will begin through a Medicare Part D pilot program in mid 2026, potentially expanding nationwide. The administration expects more private insurers to follow Medicare’s lead, further lowering out-of-pocket costs.

Officials project that broader GLP-1 access could help Americans collectively lose 125 million pounds within a year a claim experts view cautiously but agree underscores the program’s potential.

“The impact could be transformative if managed carefully,” said Dr. Levin. “The key is ensuring that lower costs don’t compromise long term innovation or access.”

The Trump weight loss drug price cuts mark one of the most sweeping drug cost reforms in recent US history, bridging health policy, pharmaceutical economics, and preventive medicine.

If fully implemented, the initiative could make GLP-1 weight loss treatments like Wegovy and Zepbound accessible to millions who were previously priced out.

For now, the move signals a major turning point in how the US government approaches obesity not just as a condition, but as a national health priority.

Author

  • Adnan Rasheed

    Adnan Rasheed is a professional writer and tech enthusiast specializing in technology, AI, robotics, finance, politics, entertainment, and sports. He writes factual, well researched articles focused on clarity and accuracy. In his free time, he explores new digital tools and follows financial markets closely.

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