Imagine transforming the landscape of healthcare by slashing the monthly cost of groundbreaking weight loss medications from over a thousand dollars to a mere $149 – that's the exciting potential of a deal the White House is on the brink of finalizing, and it's got everyone talking!
The Trump administration appears ready to unveil, possibly as soon as this week, an agreement with pharmaceutical giants Eli Lilly and Novo Nordisk aimed at reducing the prices of their popular weight loss treatments. In exchange for this pricing concession, Medicare would provide coverage for these drugs to select beneficiaries, according to individuals closely involved in the negotiations who requested anonymity due to not being permitted to discuss it publicly.
Under the proposed arrangement, the lowest doses of these innovative GLP-1 receptor agonist medications – specifically, Lilly's Zepbound and Novo Nordisk's Wegovy – would be available for $149 per month. For those new to this topic, GLP-1 drugs mimic a hormone that helps regulate blood sugar and appetite, leading to significant weight loss and benefits for conditions like diabetes and heart health. It's a game-changer for millions struggling with obesity, but the details are still unfolding.
In return, Medicare would extend coverage to some of its recipients. However, it's not entirely clear yet whether this discounted price of $149 would extend to private insurance plans, government programs, or only apply to cash-paying customers. Likewise, the specifics of which Medicare patients would be eligible remain undefined, and the entire proposal could evolve before it's official.
The sources confirmed this potential pact on the condition of anonymity, as they aren't authorized to speak openly. The story first broke in Endpoint News and was further detailed by The Washington Post, which suggests an announcement could come as early as Thursday. White House spokesperson Kush Desai cautioned in a statement that talks about unannounced deals should be treated as rumors.
Through emailed responses, representatives from Lilly and Novo Nordisk acknowledged ongoing discussions with the Trump administration but declined to share any specifics about the possible agreement.
If this deal goes through, it would mark one of the most impactful outcomes from President Donald Trump's push to bring down prescription drug costs, aligning them more closely with prices in other developed countries – a strategy dubbed his "most favored nation" drug pricing initiative. Trump reignited this effort via an executive order back in May, building on previous attempts from his first term that didn't succeed.
The administration has already secured similar voluntary agreements with Pfizer and AstraZeneca to cut prices for certain medications under Medicaid. And this is the part most people miss – these deals aren't mandates; they're negotiations that could set a precedent for broader reform. But here's where it gets controversial: is it fair for the government to bargain so heavily with drug companies, potentially influencing what treatments get prioritized?
In October, Trump himself hinted at the weight loss drug agreement during a White House briefing, proclaiming that instead of shelling out around $1,300 monthly, people would pay roughly $150. Currently, list prices for Zepbound and Wegovy hover well above $1,000 per month, though both companies have introduced more affordable cash options in response to widespread criticism about accessibility. For instance, Costco now offers Wegovy and its related diabetes drug Ozempic at $499 for uninsured customers, and Lilly partnered with Walmart to provide Zepbound at a similar reduced rate for those without insurance.
Right now, Medicare covers Wegovy for patients facing heart disease risks and Zepbound for those with sleep apnea, but not solely for weight loss purposes. Ozempic, which shares the same active ingredient as Wegovy, is reimbursed for diabetes management. The previous Biden administration suggested broadening Medicare and Medicaid coverage for GLP-1 drugs, but the Trump team opted against it. And this is where opinions diverge sharply – should taxpayer-funded programs like Medicare cover weight loss treatments, or should they focus exclusively on life-threatening conditions? It's a debate that pits public health against personal responsibility.
Moreover, Ozempic and Wegovy are slated for the upcoming round of Medicare drug price negotiations under the Inflation Reduction Act, a law signed by former President Joe Biden in 2022. The Trump administration was set to establish new prices for 15 drugs, including these GLP-1 options, by November 1, though officials have expressed reservations about these mandatory talks, preferring instead to emphasize executive actions and cooperative deals with manufacturers. Expect the final prices to be revealed by November 30.
Berkeley Lovelace Jr. serves as a health and medical reporter for NBC News, specializing in FDA coverage with an emphasis on Covid vaccines, drug pricing, and healthcare systems. Prior to this role, he reported on biotech and pharmaceuticals for CNBC.
What are your thoughts on this potential breakthrough in drug affordability? Do you believe the government should intervene more aggressively in pricing, or leave it to market forces? And could there be unintended consequences, like limiting innovation in drug development? We'd love to hear your opinions – agree or disagree in the comments below!
