BREAKING: Trump Administration Strikes Major Deal to Slash Weight-Loss Drug Prices by 90%

Obesity Medications to Become Accessible for Millions at Fraction of Cost

WASHINGTON, D.C. — Millions of Americans who rely on popular weight-loss and diabetes medications such as Zepbound and Wegovy will soon see dramatic price cuts, thanks to a new agreement announced by former President Donald Trump’s administration with drugmakers Eli Lilly and Novo Nordisk.

Beginning January 2026, direct-pay customers will be able to purchase the drugs at nearly 90 percent less than current prices. The reduced prices will extend to Medicare recipients in July, with state Medicaid programs eligible to join later in the year.

“These are two companies behind the groundbreaking treatments that have changed lives for millions of Americans,” Trump said during a press briefing at the White House. “We’re making sure Americans no longer pay higher prices than anyone else in the world.”

The deal sets the starting oral dose price at $149, about one-tenth of the current list cost. The average price for injectable doses will drop to $350 in January and will decline further to $245 within two years.

Medicare and Medicaid will pay $149 for the starting oral dose and $245 per month for subsequent prescriptions. Medicare beneficiaries will have a $50 copay, and for the first time, the program will cover these medications for patients using them specifically for weight management under certain health conditions.

Currently, only 13 states fully cover GLP-1 drugs—such as Wegovy and Zepbound—for both diabetes and obesity treatments, while 34 states provide no coverage at all. The new arrangement is expected to expand access significantly.

Eligibility and Coverage Guidelines

Medicare coverage will focus on patients with obesity-related health conditions. Those with a body mass index (BMI) above 27 who are pre-diabetic or have a history of stroke, heart attack, or peripheral artery disease will qualify.

Patients with a BMI above 30 and chronic conditions such as kidney disease or heart failure will also be eligible. Individuals with a BMI above 35, even without other conditions, will qualify as well.

Officials estimate about 10 percent of Medicare beneficiaries will meet the new eligibility criteria. The administration projects the move will save $300 billion in long-term Medicare costs by reducing obesity-related illnesses. The White House says obesity now costs Americans over $1 trillion annually in medical expenses.

Under the agreement, both pharmaceutical companies have agreed to comply with the administration’s Most Favored Nation pricing policy. That means the drugs must be sold to U.S. consumers, Medicare, and Medicaid at the lowest price available in any developed nation.

Additionally, companies must use profits from higher overseas prices to further lower U.S. drug costs. Future GLP-1 medications developed by the two firms and approved for obesity treatment will also fall under the same pricing structure.

Lifestyle Support and Long-Term Impact

In addition to the price cuts, Eli Lilly and Novo Nordisk will offer lifestyle coaching programs to patients using their medications, focusing on nutrition and exercise to improve long-term outcomes.

Administration officials said the agreement should be cost-neutral for Medicare because savings from reduced diabetes treatment expenses will offset expanded obesity drug coverage.

Trump called the deal “a victory for American patients and taxpayers,” saying it ends “decades of price gouging that forced Americans to pay up to 1,400 percent more for the same medicine sold overseas.”

When implemented, analysts predict the agreement could reshape the weight-loss drug market and bring relief to millions struggling with the high cost of treatment.

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