The Trump administration announced Thursday a sweeping agreement with pharmaceutical giants Eli Lilly and Novo Nordisk aimed at dramatically lowering the cost of popular GLP-1 drugs used to treat obesity, diabetes, and other related health conditions. The deal is set to benefit millions of Americans, including Medicare and Medicaid patients, through the upcoming TrumpRx prescription program.
With GLP-1 drugs currently revolutionizing treatment for obesity and metabolic diseases, the Trump administration’s deal with Eli Lilly and Novo Nordisk marks one of the most significant public-private healthcare agreements in recent years — one that could reshape how millions of Americans access life-changing medications.
Speaking from the Oval Office, President Donald Trump hailed the announcement as a landmark moment for U.S. healthcare. “This is a triumph for American patients that will save lives and improve the health of millions and millions of Americans,” Trump said, thanking the drugmakers for reaching the agreement after months of negotiations.
Under the new plan, patients who purchase GLP-1 injectables such as Ozempic, Wegovy, Zepbound, and Mounjaro through the TrumpRx platform will pay about $350 per month starting in January, with the price expected to fall to around $250 over the next two years for those paying fully out-of-pocket. For patients covered under Medicare, the monthly co-pay will be $50, with the new pricing expected to take effect by mid-2026. Officials said the TrumpRx platform will allow Americans to buy medications directly from manufacturers, bypassing traditional insurance systems. Daily pill versions of the GLP-1 drugs — pending FDA approval — are projected to start at $149 per month for initial doses.
The Trump administration expects TrumpRx to launch by the end of the year, giving consumers access to lower-cost medications directly from manufacturers. Medicaid participation will depend on state opt-in timelines, but federal officials expect most states to join.
The new pricing model could make the drugs accessible to a broader range of patients, particularly those with severe obesity or obesity-related complications. Currently, most Medicare and Medicaid plans do not cover weight-loss drugs unless linked to other health conditions, leaving many patients paying more than $1,000 a month out-of-pocket.
Under the new structure, lower prices will initially be available to Medicare patients who meet certain medical criteria, including:
- A BMI over 27 with prediabetes, heart attack, or stroke history;
- A BMI over 30 with kidney disease or other chronic conditions;
- A BMI over 35, which classifies as severe obesity.
Administration officials estimate roughly 10% of Medicare patients will qualify at first. The program could save the government an estimated $170 billion over time through reduced obesity-related healthcare costs.
“This is not about losing weight — this is about making America healthy again,” one senior official said. “We’re talking about preventing strokes, kidney disease, and other deadly complications.”
The deal marks another step in the Trump administration’s “most-favored-nations” initiative, which seeks to ensure Americans pay drug prices comparable to those in other developed countries. The agreement follows an executive order signed earlier this year directing federal agencies to pursue such deals to lower medication costs.
Eli Lilly CEO David A. Ricks called the announcement “a pivotal moment in U.S. health care policy and a defining milestone for Lilly,” adding that the company remains committed to expanding obesity treatment access. Novo Nordisk CEO Mike Doustdar said the agreement will “bring semaglutide medicines to more American patients at a lower cost,” noting that the drug’s FDA-approved uses already span obesity, diabetes, liver disease, kidney disease, and cardiovascular risk. Both companies are preparing to release new GLP-1 pill versions next year, pending regulatory approval.
Negotiations between the Trump administration and the drugmakers reportedly took months to finalize. Health and Human Services Secretary Robert F. Kennedy Jr. confirmed that the discussions were “intense but productive,” emphasizing that the new pricing framework was built to be sustainable for both taxpayers and the private sector. Health experts note that roughly 40% of Americans are considered obese, making access to affordable treatments a major public health priority. The administration has also signaled plans to complement the initiative with efforts to promote healthier diets and increase physical activity in schools and the military. “There is nothing more important we can do than lower this price,” Kennedy said.
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