President Donald Trump announced landmark deals with Eli Lilly and Novo Nordisk that will allow Medicare to start covering GLP-1s for obesity beginning in mid-2026. This could open access to millions of older adults and potentially prompt more private insurers to follow suit. Roughly 8 to 9 million people in the US are currently using GLP-1s.

The deals aim to address the limited insurance coverage for obesity drugs due to high prices, with monthly list prices exceeding $1,000. The agreements with Eli Lilly and Novo Nordisk could lead to a major shift in expanding coverage for patients who cannot afford these medications. Medicare coverage will be a game-changer for many.

The Trump administration will put constraints on which Medicare beneficiaries will be eligible to receive GLP-1s for obesity. Patients with a BMI of 27 or above with prediabetes or cardiovascular disease, a BMI of 30 or more, or severe obesity with a BMI of 35 and above may qualify. Private insurers may also feel pressure to expand coverage.

Direct-to-consumer offerings under the deal could benefit underinsured or uninsured patients who may not have coverage for obesity drugs. Lower cost options for GLP-1s will be available through TrumpRx, offering discounts on drugs like Wegovy and Zepbound. Medicaid programs may also see increased coverage due to lower prices offered.

State Medicaid programs face budget constraints but may opt into covering obesity drugs at lower price points. Offering discounts to Medicaid programs could lead to a significant increase in coverage for drugs like Zepbound. The deals with Eli Lilly and Novo Nordisk could have a substantial impact on expanding access to obesity treatments.

Read more at CNBC: Trump deals with Lilly, Novo Nordisk could broaden obesity drug access