President Donald Trump announced deals with Eli Lilly and Novo Nordisk to reduce prices of obesity drugs starting in 2026. Medicare will cover obesity drugs for some patients for the first time, with a $50 copay per month. Prices for upcoming obesity pills will range from $149 to $350 per month.
Existing GLP-1 drugs will cost $245 per month for Medicare and Medicaid beneficiaries. Medicare will cover about 66 million people, potentially expanding access to these medications. Eligible patients include those with obesity, prediabetes, cardiovascular disease, and related conditions. The goal is to balance broad access with clinical benefits. The companies will ensure most favored nation pricing on new medicines, offer U.S. net prices on primary care drugs, and share savings from foreign price increases. Eli Lilly will lower prices on LillyDirect and Zepbound, with prices starting at $299 per month for the multidose pen. Their pill will start at $149 per month.
Eli Lilly CEO David Ricks called the deal a pivotal moment in U.S. health care policy. Novo Nordisk CEO Mike Doustdar said the announcement will make semaglutide medicines more affordable. Medicare previously considered covering obesity drugs, but the Trump administration declined due to cost concerns.
Some health experts believe covering obesity drugs could reduce downstream costs. Semaglutide will be part of the next round of Medicare drug price negotiations under the Inflation Reduction Act. Trump is expected to announce new prices for the 15 drugs selected for negotiations by Nov. 30, while Tirzepatide may not be eligible until the end of the decade.
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