Combating Obesity: Trump's Drug Deal Slashes Prices for Millions

President Donald Trump has unveiled a sweeping agreement with pharmaceutical giants Eli Lilly and Novo Nordisk to slash prices for popular weight-loss and diabetes drugs, marking a pivotal shift in Medicare and Medicaid coverage policies. The deal, announced Nov. 6, reduces the cost of GLP-1 drugs like Ozempic and Wegovy to $350 and $149 per month, respectively, for cash-paying patients and beneficiaries through the new TrumpRx.gov platform, set to launch in January 2026, according to Fortune. Medicare and Medicaid recipients will also gain access to these medications at $245 per month, with a $50 co-pay for beneficiaries, Yahoo Finance reported. This move expands coverage to millions of Americans, particularly seniors and low-income individuals, as Medicare had previously excluded weight-loss drugs from its formulary, according to Axios.

The administration emphasized that the agreements include commitments from Lilly and Novo Nordisk to align U.S. drug prices with international benchmarks under the Most Favored Nation (MFN) pricing framework, Investors Business Daily reported. This aligns with Trump's broader strategy to curb pharmaceutical costs, which includes threats of steep tariffs on drugmakers and granting priority FDA review vouchers for new therapies, according to Morningstar. The price cuts—up to 74% for cash buyers—come as the Centers for Medicare and Medicaid Services (CMS) recently signaled flexibility in including weight-loss drugs in Part D plans, provided they address approved medical conditions like diabetes or cardiovascular risk reduction, as Fortune reported.

The fiscal implications of the policy are staggering. While the White House highlighted savings for patients, critics warn the expanded coverage could deepen the national debt by $35 billion annually, given the high demand for GLP-1 medications, as Fortune reported. CMS Administrator Mehmet Oz noted ongoing negotiations in October, underscoring the complexity of balancing affordability with fiscal sustainability. Meanwhile, the pharmaceutical companies secured concessions, including tariff certainty and expanded access to beneficiaries with obesity—a demographic previously excluded from Medicare coverage, Morningstar reported.

Beyond GLP-1 drugs, the deals extend to other treatments. Lilly's Zepbound and Novo's oral Wegovy will cost $346 and $150 monthly, respectively, while insulin products will drop to $35 per month through TrumpRx, Investors Business Daily reported. Additional investments by the companies—$27 billion from Lilly and $10 billion from Novo—aim to bolster domestic manufacturing, Yahoo Finance reported. Market reactions were mixed: Novo Nordisk's shares fell 3.5%, and Lilly's dipped slightly, reflecting investor caution amid regulatory pressures, according to Investors Business Daily.

The policy shift responds to a public health crisis, with 40% of U.S. adults classified as obese by the CDC, Investors Business Daily reported. By integrating weight-loss drugs into Medicare, the Trump administration aims to combat chronic diseases linked to obesity, such as heart disease and diabetes, while addressing soaring drug costs. However, the long-term success hinges on managing costs for the Medicare program and ensuring equitable access for all eligible patients, Axios reported.