The Trump administration is preparing to announce negotiations with Eli Lilly and Novo Nordisk, aimed at significantly reducing the prices of certain weight-loss drugs to below $150 for a monthly supply. This deal, set to be unveiled on November 6, is expected to expand Medicare and Medicaid coverage for these obesity medications, which have gained immense popularity but have remained financially out of reach for many due to high list prices and limited insurance coverage.
Reports from the Wall Street Journal and Endpoints News indicate that this agreement will allow Lilly’s Zepbound and Novo’s Wegovy—two of the most sought-after weight-loss drugs—to be offered at a substantially lower price of $149 per month. Currently, these medications are not covered by Medicare as treatments for obesity. The deal is designed to make these drugs more accessible for seniors over 65 and individuals with disabilities, who are eligible for Medicare.
The potential announcement comes as part of broader negotiations between the Trump administration and the pharmaceutical companies. Additionally, it has been reported that there are plans to enable the sale of these obesity drugs through the upcoming TrumpRx direct-to-consumer website, which is scheduled to launch in 2026.
A representative from Novo Nordisk confirmed their active engagement in discussions with the administration, though Eli Lilly officials did not respond to inquiries regarding the negotiations. This initiative is part of the Trump administration’s ongoing efforts to incentivize pharmaceutical companies to lower drug prices, a push which has seen deals with various drug manufacturers aimed at facilitating more affordable access to medications.
Healthcare professionals have highlighted the critical need for broader insurance coverage for weight-loss drugs, noting that they can profoundly improve the quality of life for many patients. Dr. Angela Fitch, former president of the Obesity Medicine Association, emphasized that current prices often pose significant barriers for individuals seeking these treatments.
Despite the potential for increased coverage under Medicare, many insurers have historically been reluctant to include obesity drugs in their plans. Current research indicates that while GLP-1 drugs—like those produced by Lilly and Novo—are frequently covered when prescribed for diabetes or heart conditions, over half of employer insurance plans do not cover these medications for obesity treatment. However, data from Mercer, a benefits consulting firm, shows a slight increase in large employers providing coverage for GLP-1 drugs for obesity; from 41% in 2023 to 44% in 2024.
The Biden administration previously announced intentions to expand Medicare and Medicaid coverage for these medications, projecting that around 3.4 million Medicare beneficiaries could benefit beginning in 2026, along with another 4 million Medicaid recipients if those plans come to fruition.
As the negotiations progress, the outcome could potentially transform access to essential weight-loss medications for millions of Americans, should the administration finalize these coverage expansions.
