Public Health

Trump Administration Reaches Deal with Eli Lilly, Novo Nordisk to Lower GLP-1 Weight-Loss Medication Costs

Anthony Calabro, MA

Key Highlights

  • GLP-1 weight-loss medication prices cut by up to 70% under a new agreement between the Trump administration, Eli Lilly, and Novo Nordisk.

  • Monthly costs drop to approximately $150 for oral GLP-1 pills and about $350 for injectables.

  • Medicare and Medicaid to begin covering GLP-1 obesity treatments with copays around $50 per month starting in 2026.

The Trump administration announced a new agreement with pharmaceutical companies Eli Lilly and Company and Novo Nordisk A/S to reduce the cost of obesity medication and expand access to these treatments. The deal targets glucagon-like peptide-1 (GLP-1) medications, as well as upcoming oral weight-loss pills currently under review by the FDA. Under the plan, the companies will offer these medications at reduced list prices through government programs and a new online distribution platform. Administration officials stated that the initiative will make high-cost obesity treatments more affordable for millions of Americans, including those covered by Medicare and Medicaid.1

GLP-1 receptor agonists have become the leading pharmacologic option for chronic weight management, offering clinically significant weight loss by reducing appetite and improving metabolic control. Despite their therapeutic potential, the high retail cost has limited patient access. Injectable medications will be priced around $350 per month (down from current list prices that often exceed $1000–$1350 per month for self-pay patients).1

The agreement is expected to reduce prices for both existing and upcoming treatments, the White House noted. For example, a forthcoming oral GLP-1 pill could cost about $150 per month in the event of an upcoming FDA approval.1 

Under current policy, Medicare covers GLP-1 medications for diabetes or cardiovascular indications—but not when prescribed solely for obesity—while Medicaid coverage remains optional and inconsistent.2 According to the White House, for Medicare recipients, the program will begin subsidizing GLP-1 obesity treatments for qualifying patients based on clinical criteria such as BMI and comorbid conditions. Beneficiaries are expected to pay approximately $50 per month in copays for covered medications.1 For participants in federal programs, certain formulations could be available for approximately $245 per month.1 State Medicaid programs will also have access to these medications at these prices, according to the White House.1

References

  1. The White House. Fact Sheet: President Donald J. Trump Announces Major Developments in Bringing Most-Favored-Nation Pricing to American Patients. The White House. November 6, 2025. https://www.whitehouse.gov/fact-sheets/2025/11/fact-sheet-president-donald-j-trump-announces-major-developments-in-bringing-most-favored-nation-pricing-to-american-patients/. Accessed November 6, 2025.
  2. Associated Press. Trump unveils deal to expand coverage and lower costs on obesity drugs. Published November 6, 2025. Accessed November 6, 2025. https://apnews.com/article/15b24e03d558aa6bbcf37e52ba2d354