The White House recently announced a landmark deal with pharmaceutical companies Eli Lilly and Nordisk that will impact Medicare beneficiaries and others in the coming months. The agreement cuts prices for GLP-1 receptor agonists, such as Ozempic and Wegovy, while expanding Medicare coverage for these weight-loss medications. The news is a turnaround from a Trump administration announcement earlier this year blocking Medicare from covering obesity drugs.
With the new deal, Medicare will no longer only cover these drugs for diabetes or heart issues, but for obesity itself, potentially saving beneficiaries hundreds of dollars each month.
Why it matters: In the U.S., over 30% of adults age 65 or older are considered obese — having a body mass index (BMI) of 30.0 or higher — according to America’s Health Rankings. The Centers for Disease Control and Prevention (CDC) estimates the prevalence of obesity among all American adults to be 40%.
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Before the deal, these injectables cost $1,000 or more per month, making it difficult for many retirees to afford. Trump’s deal promises lower government pricing and copays, which is considered a game-changer for the 65 million people currently on Medicare.
With the new deal, people buying GLP-1 medications directly from the manufacturers (or through a new portal called TrumpRx) will pay an average of $350 per month to start, with the companies having committed to lowering the price to roughly $250 over the next two years.
The price of Ozempic ($1,000 per month) and Wegovy ($1,350 per month) will decrease to $350 per month when purchased through TrumpRx or directly through the manufacturers. The prices of Zepbound and Orforglipron (if approved) will fall from $1,086 per month to an average of $346 per month, per the White House.
If the FDA later approves the oral version of Wegovy, or similar GLP-1 pill-form drugs in each company’s portfolio, TrumpRx will price the initial monthly dose at $150.
Medicare beneficiaries will have access to some GLP-1 drugs approved for both obesity and diabetes for a $50 copay. The manufacturers have agreed to cut the price Medicare pays to $245, to help cover the costs of increased coverage of weight-loss drugs.
The agreements also call for Novo Nordisk to commit $10 billion and Eli Lilly to commit $27 billion to boost their U.S. manufacturing, effectively securing a reprieve from potential tariffs.
Trump promoted the deal as “the biggest price cut in history,” but the rollout is slow. TrumpRx is expected by December 2025, with full integration by Medicare in mid-2026.
To understand the savings to Medicare and Medicaid recipients, here’s a quick comparison:
Swipe to scroll horizontally
Drug
Current Medicare Price
New Medicare Price Under the Deal
Beneficiary Copay
Ozempic
Average of $1,000/month
$245/month
$50/month
Wegovy
Average of $1,350/month
$245/month
$50/month
Orforglipron (if approved)
Average of $1,086/month
$346/month
$50/month
Zepbound
Average of $1,086/month
$245/month
$50/month
Mounjaro
Over $1,000/month
$245/month
$50/month
Additionally, the deal also provides reduced costs on other Eli Lilly and Novo Nordisk medicines.
For example:
- Emgality, a treatment for migraines, will cost $299 per pen, a discount of $443 off of the list price.
- Trulicity, a commonly used diabetes medicine, will cost $389 per month, a discount of $598 off of the list price.
- Widely-used insulin products, including NovoLog and Tresiba, will cost $35 per month in supply.
Key facts:
- Drugs involved: Ozempic and Wegovy, Mounjaro and Zepbound. Down the line, oral versions like Orforglipron may be included.
- Price cuts: Medicare will pay $245 per month, down from list prices of about $1,000 to $1,350. Beneficiaries pay a maximum copay of $50. Direct-to-consumer via TrumpRx or the manufacturers: $350/month now, $250 in two years, with oral starters at $149.
- Expansion of coverage: Obesity and weight loss will be included for the first time under Medicare coverage if tied to comorbidities, such as heart or kidney disease, or severe obesity. This will affect about 10% of Medicare enrollees. Medicaid states it will see the same rates.
- Rollout: TrumpRx by year-end 2025. Medicare mid-2026
What does this mean for Medicare beneficiaries?
For a Medicare beneficiary who is diabetic, obese, and living on a fixed income, the deal could mean the availability of proven GLP-1s without breaking the bank. The deal could also open doors for those with heart or kidney issues, and address obesity’s $173 billion annual Medicare tab.
Besides the good news, access hinges on the plan’s adoption. Will it become voluntary for Part D? And, copays, although capped, can add up over the long term. Early adopters via TrumpRx will get relief now, but most will wait until summer 2026.
Deal seeks to balance targeted relief and tariffs on big pharma
The United States has less than 5% of the world’s population, yet roughly 75% of all global pharmaceutical profits come from American taxpayers. As it stands now, Trump’s GLP-1 deal is attracting both praise and skepticism, as it strikes a balance between imposing tariffs on the pharmaceutical industry and targeted relief to aid Medicare’s most vulnerable.
If all goes as planned, the deal would transform access, slash monthly costs for injectables and lift the burden for low-income Medicare retirees. According to AARP’s David Certner, “This levels the playing field for seniors who’ve been priced out.” Will you benefit? Check eligibility at medicare.gov or trumpRx.gov.
