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Trump administration negotiates lower prices for obesity medications
The Trump administration announced agreements with Eli Lilly and Novo Nordisk on Friday to reduce monthly costs of popular weight-loss drugs by as much as 75%, expanding access through Medicare and Medicaid while launching a government-run discount platform.
New pricing structure unveiled
Under the deals, consumers will pay between $245 and $350 per month for obesity treatments like Wegovy and Zepbound-down from over $1,000 without insurance. Medicare beneficiaries will access the drugs for $50 monthly, while Medicaid enrollees will see phased rollouts as states opt in, according to senior officials.
The discounted prices will appear on TrumpRx, a forthcoming government website, where Wegovy and Zepbound will average $350 monthly initially, dropping to $250 within two years. Medicare prices for Ozempic, Wegovy, Mounjaro, and Zepbound will cap at $245.
Expanded access and tariff exemptions
Eli Lilly confirmed its weight-loss pill, orforglipron, will start at $149 for the lowest dose, pending FDA approval, while Zepbound's entry price will be $299. The company also secured a three-year tariff exemption as part of the agreement.
"Lilly is in a unique position to work with the US government to rebalance the global system, expand access, and lower costs for Americans," said David Ricks, Eli Lilly's CEO, in a statement.
Regulatory and coverage challenges
Federal law currently prohibits Medicare from covering weight-loss drugs, though they remain eligible for diabetes and cardiovascular treatments. Only 13 states extend Medicaid coverage for obesity purposes. Health Secretary Robert F. Kennedy Jr. called obesity "the number one driver of chronic disease" in the U.S. while emphasizing the deals' limitations:
"It's not a panacea, it's not a silver bullet," Kennedy said, urging dietary changes and exercise alongside medication.
Robert F. Kennedy Jr., Health Secretary
Broader pharmaceutical price pressure
The agreements follow Trump's July ultimatum to 17 drugmakers, demanding lower prices within 60 days. Pfizer led early negotiations, cutting some medication costs by up to 85% on TrumpRx and reducing Medicaid prices. AstraZeneca and EMD Serono have since finalized similar deals.
Next steps
The TrumpRx platform is slated to launch by January, with Medicare and Medicaid expansions contingent on state participation timelines. FDA approval for pending drugs like orforglipron remains a prerequisite for the lowest advertised prices.
