Trump Announces Sweeping Cost Cuts on Lilly and Novo Weight Loss Drugs in Exchange for Medicare Coverage
Trump administration reached a deal with Eli Lilly and Novo Nordisk to slash prices of obesity and diabetes drugs for Medicare enrollees.
Under the agreement, Medicare will pay $245 per month for Wegovy, Zepbound, Ozempic, and Mounjaro, with beneficiaries paying a $50 copay.
Starter doses of new oral obesity drugs will be offered for $149 per month if approved.
The deal expands access to these drugs for most Medicare beneficiaries through a pilot program, but does not cover commercial insurance plans.
In exchange, Lilly and Novo receive a three-year tariff relief on their drugs and faster FDA regulatory reviews.
The agreement does not extend Medicare and Medicaid coverage to all anti-obesity drugs; coverage remains limited by statute, but the pilot program allows broader access for select beneficiaries.
The deal is expected to make 40 million more Americans eligible for treatment with these drugs.
The companies will also offer discounted prices through a government portal and to Medicaid at 'most favored nation' rates.