Washington, D.C: In a major policy shift, President Donald Trump announced Thursday that Medicare will begin covering select weight-loss drugs under a new deal between his administration and drugmakers Eli Lilly and Novo Nordisk. The agreement also slashes the prices of the blockbuster diabetes and anti-obesity medications Ozempic, Wegovy, and Zepbound in one of the largest drug-pricing reforms to date.
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Medicare to Cover GLP-1 Weight-Loss Drugs for the First Time
The Trump administration confirmed that Medicare will extend coverage to about 10% of its enrollees through a new pilot program launching in mid-2026. The program will include seniors who are severely obese (BMI > 35), as well as those who are overweight with prediabetes, cardiovascular disease, kidney disease, or uncontrolled hypertension.
Under the deal, Medicare beneficiaries will pay only a $50 monthly copay for GLP-1 drugs approved for both diabetes and obesity.
“This is a breakthrough for millions of Americans struggling with chronic diseases tied to obesity,” a senior administration official told reporters. “It’s the first time Medicare will cover medications that directly target weight loss.”
Massive Price Cuts: From $1,300 to $245 per Dose
As part of the agreement, Eli Lilly and Novo Nordisk will cut the price Medicare pays for their GLP-1 drugs to $245 per dose roughly one-ninth of the current list price, which ranges from $1,000 to $1,350 per month. The move is expected to save billions in Medicare spending.
In exchange for the price reductions, the companies will receive tariff exemptions and priority FDA review for select products.
“This deal rebalances the global system,” said Eli Lilly CEO David Ricks. “We’re expanding access and lowering costs for Americans while preserving our ability to innovate.”
TrumpRx to Offer Direct-to-Consumer Discounts
A new direct-to-consumer platform, TrumpRx.gov, will launch in early 2026, offering GLP-1 drugs for $350 per month or less, trending down to $245 over two years.
For upcoming oral obesity pills pending FDA approval prices will start as low as $149 per month.
Trump hailed the announcement as “a revolution in affordable medicine,” adding:
“Instead of paying $1,300, Americans will soon pay about $150 for the same fat-loss drug.”
Both Novo Nordisk and Eli Lilly already offer discounted cash-pay options currently around $349–$499 per month but TrumpRx aims to standardize and lower those prices nationwide.
Medicaid Expansion and State Options
The drugmakers have also agreed to extend the $245 per-dose price to all 50 state Medicaid programs, though participation will be optional for states.
This could expand coverage for lower-income Americans, particularly in states that previously declined to cover weight-loss drugs due to high costs.
As of mid-2024, only 13 states covered GLP-1 drugs for obesity treatment, according to a KFF survey. The Trump administration hopes this deal will encourage more states to participate.
Who Will Benefit?
Roughly 6.6 million Medicare beneficiaries about 10% of the total could gain new access to GLP-1 treatments under the pilot program.
The expansion primarily targets individuals at high risk of heart disease, diabetes, and kidney failure linked to obesity.
Industry Reaction and Implications
Novo Nordisk CEO Mike Doustdar said the agreement “will bring semaglutide medicines to more American patients at a lower cost.”
Semaglutide is the active ingredient in Ozempic and Wegovy, two of the world’s most sought-after GLP-1 drugs.
Health policy analysts predict the deal could pressure private insurers to follow Medicare’s lead, making obesity treatments more widely accessible across all income groups.
Meanwhile, Eli Lilly confirmed it will also lower prices on its LillyDirect platform, offering Zepbound for $299 to $449 per month, depending on dosage.
Trump’s announcement marks one of the most significant steps yet toward reducing prescription drug prices in the U.S., a long-standing bipartisan concern.
If successful, the Medicare pilot could pave the way for full federal coverage of obesity drugs by 2028, reshaping how chronic metabolic diseases are managed nationwide.