Trump Administration Announces Major Price Cuts, Medicare Coverage for Obesity Medications

Medicare Coverage for Obesity: Some of the most popular weightloss and diabetes drugs in the United States are about to become much cheaper after two new deals between the Trump administration and drugmakers Eli Lilly and Novo Nordisk. The government said these new agreements will help reduce the high cost of obesity medicines and make them more affordable for millions of Americans.

Lower Drug Prices

The new pricing plan will lower the cost of some well known drugs like Ozempic, Wegovy, and Zepbound, which are also known as GLP-1 medications. These drugs normally cost between $1,000 and $1,350 every month, depending on the dosage and the patient’s insurance. But under the new deal, Americans who buy these drugs directly from the companies will soon pay around $350 per month at first. Officials said the prices will drop even more to about $250 per month within the next two years.

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If the oral versions of these drugs get approval from the Food and Drug Administration (FDA), their starting price will be just $149 per month. These lower prices will be available on a new online government marketplace called TrumpRx, which is expected to launch in early 2026.

Dr. Mehmet Oz, who leads the Centers for Medicare and Medicaid Services (CMS), said, “Consumers will be able to view the medication prices before the end of this year.”

The Trump administration said these changes are part of a bigger effort to cut prescription drug prices in America. As part of the deal, both Eli Lilly and Novo Nordisk will tie their U.S. prices to the lowest prices available in other countries. In return, the government will offer tariff exemptions on imported medicines and speed up regulatory approvals for new drugs.

Cheaper Medicines

People on Medicare will also benefit from big cost reductions. Seniors who use GLP-1 drugs that are approved for both diabetes and obesity will only pay a $50 copay. The government’s negotiated price for these drugs will be limited to $245, and these changes are expected to begin in mid-2026.

One major part of this plan is the expansion of who can qualify for treatment under Medicare. Normally, Medicare does not cover drugs used only for weight loss, but this policy will now include seniors with certain health conditions. Under the new rules, people who are overweight with prediabetes, those who have had a stroke or heart problem, or individuals with diabetes or high blood pressure linked to obesity can receive treatment. Officials believe around six million seniors, or roughly 10% of Medicare enrollees, will now qualify.

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Support for Medicaid and the States

Eli Lilly and Novo Nordisk also promised to help reduce prices for Medicaid programs. However, these discounts will depend on each state’s decision to join the plan. A survey by KFF last year showed that only 13 states were covering obesity drugs through Medicaid at the time, and some states later withdrew because of budget limits.