On November 7, 2025, President Trump announced on Thursday, November 6, that an agreement has been reached with Lilly and Novo Nordisk to significantly reduce the prices of some obesity treatment drugs, including the forthcoming oral medications. This move marks a milestone in expanding the affordability of these costly heavyweight drugs.
The agreements are aimed at lowering the prices and access thresholds of GLP-1 class drugs (originally used for diabetes treatment, now widely used for obesity treatment due to their significant weight management effects) in the following ways:
Medicare and Medicaid Price Reductions and Coverage:
The agreement will lower the prices of GLP-1 drugs in Medicare and Medicaid.
Inclusion in Medicare:
Starting from mid-2026, Medicare will begin reimbursing some patients for obesity drugs, potentially expanding the market and encouraging private insurances to follow suit.
Consumer Discount Platform:
The Trump administration plans to launch the website TrumpRx.gov in January 2026 to directly provide these drugs to consumers at discounted prices.
Cost-sharing:
Medicare patients meeting the criteria will only need to pay a copay of $50 per month for all approved uses of GLP-1 drugs.
Oral Medication Pricing:
The upcoming oral medications from Lilly and Novo Nordisk (pending approval) will be available through the government platform at an initial dose for all individuals at a price of $145 per month.
Existing Injection Drug Pricing:
The initial dose for existing injection drugs like Wegovy and Zepbound on TrumpRx will be $350 per month, decreasing to $245 per month within two years.
President Trump stated, “Wegovy and Zepbound were never covered by Medicare for weight loss before, often costing consumers over $1,000 per month.” He continued, “That ends as of today.”
This agreement is one of the most impactful measures taken by the Trump administration to curb high drug costs in the United States. It is a core step in implementing its “Most Favored Nation” policy, aimed at linking American drug prices to the lowest prices internationally.
Secretary of Health and Human Services Robert F. Kennedy Jr. emphasized, “These are the most influential drugs in our country, and this will have the greatest impact on the American people.”
He stated, “All Americans, even those not covered by Medicaid or Medicare, will be able to access their GLP-1 drugs at the same price.”
As part of the agreement, Lilly and Novo Nordisk have pledged to guarantee most favored nation pricing for all newly launched drugs and provide this price to all state Medicaid programs.