The Trump administration is preparing to announce new agreements with Eli Lilly and Novo Nordisk to dramatically reduce the prices of their leading weight-loss drugs.
According to reports from The Wall Street Journal and Endpoints News, the deals would lower the monthly cost of select obesity medications to less than $150 per month.
The agreements are expected to be revealed on November 6 and would also extend Medicare and Medicaid coverage for these drugs — a major shift in federal policy.
Details of the Negotiated Deals
Under the proposed deals, Lilly’s Zepbound and Novo Nordisk’s Wegovy would be offered at a $149 monthly price for their lowest-dose options.
In return, the drugs would gain coverage under Medicare, the federal health insurance program for people aged 65 and older or with disabilities.
Currently, Medicare does not cover obesity medications, even though the same drugs are often covered when prescribed for diabetes or heart conditions.
Expansion of Access Through TrumpRx
The Trump administration is also negotiating with the drugmakers to allow certain obesity medications to be sold through a new government-run online pharmacy, called TrumpRx, expected to launch in 2026.
In a statement, Novo Nordisk confirmed it is engaged in “constructive discussions with the administration.” Eli Lilly has not yet commented on the negotiations.
These agreements are part of a broader effort by President Donald Trump to push pharmaceutical companies to lower prices in line with what patients pay abroad — a policy concept known as “most favored nation” pricing.
Broader Context: Trump’s Efforts to Lower Drug Prices
This is not the first time the Trump administration has struck deals with pharmaceutical companies. Earlier, the president announced partnerships with several drugmakers to supply discounted medications to federal programs and the upcoming TrumpRx platform.
On September 30, Trump unveiled a most favored nation agreement with Pfizer, reducing Medicaid drug costs. In October, he also announced that EMD Serono, the largest U.S. fertility drug manufacturer, would lower prices on a widely used in vitro fertilization (IVF) medication.
Doctors and Advocates Say Expanded Coverage Is Crucial
Experts say lowering prices and expanding coverage for weight-loss drugs could have a transformative impact on public health.
“These medications are really life-changing for so many people,” said Dr. Angela Fitch, former president of the Obesity Medicine Association. “It’s very challenging for people to afford the current prices.”
The medications in question — GLP-1 receptor agonists such as Wegovy and Zepbound — suppress appetite, leading to significant weight loss.
Insurance Coverage Gap for Obesity Drugs
While GLP-1 drugs are often covered when prescribed for diabetes or cardiovascular conditions, most employer-based insurance plans do not cover them for obesity treatment.
In 2024, 44% of large employers covered GLP-1s for obesity, up slightly from 41% in 2023, according to data from Mercer, a major benefits consulting firm.
From the Biden Rule to Trump’s Implementation
The Biden administration previously proposed expanding Medicare and Medicaid coverage for obesity drugs under a 2024 Health and Human Services (HHS) rule. That plan would have made 3.4 million Medicare beneficiaries and 4 million Medicaid recipients eligible starting in 2026.
However, that expansion depends on the Trump administration’s decision to finalize the rule — a move that now appears likely as part of the new pricing agreements.
