President Trump Announces Weight Loss Drug Pricing Deal
President Trump on Thursday announced a deal to drastically lower the price of weight loss drugs for certain Americans.
“Today, I’m thrilled to announce that Eli Lilly and Novo Nordisk, the world’s two largest pharmaceutical manufacturers, have agreed to offer their most popular GLP-1 weight loss drug—what I call the ‘fat drug’—at dramatic discounts,” the president stated in the Oval Office.
Under this agreement, Eli Lilly (Zepbound) and Novo Nordisk (Ozempic and Wegovy) will reduce the cost of their weight loss drugs for eligible patients on Medicare, Medicaid, and those using the planned “TrumpRx” pharmaceutical website. The average monthly price for most eligible individuals will range from $245 to $350, a significant drop from the current price of up to $1,350 per month.
Mr. Trump expressed his difficulty in negotiating with pharmaceutical company executives and noted that Health and Human Services Secretary Robert F. Kennedy Jr. had spent “months” on these negotiations. The Oval Office event was cut short when one attendee fainted, leading to the removal of press members from the room. According to a statement by White House press secretary Karoline Leavitt, the individual is receiving medical care.
Details of the Weight Loss Drug Price Deal
TrumpRx, set to launch as early as late 2023, will allow customers to purchase prescription drugs directly from pharmaceutical companies without insurance. When accessed through TrumpRx, injections of Ozempic and Wegovy are expected to cost around $350 per month, with similar GLP-1 drugs taken orally priced at $149 per month once approved by the FDA.
For eligible patients on Medicaid and Medicare:
- Ozempic, Wegovy, Mounjaro, and Zepbound will cost $245 per month.
- The Medicare copay is set at $50.
The administration aims for these new pricing tiers to take effect in January 2026, with the Medicare program potentially starting earlier, around July. For Medicaid, the timing depends on state participation.
While about 10% of Medicare patients are expected to be eligible for the lowest prices, officials believe this initiative could save approximately $170 billion over time by reducing obesity-related risks in the Medicare population.
“This is not about losing weight; it’s about making America healthy again,” said an official on a briefing call. “We are limiting access for patients who will benefit clinically from it.”
Some analysts suggest that while the “most-favored-nation” pricing might have a limited impact on Medicaid patients due to existing statutory “best price” protections, it could still save states money. Additionally, Medicaid users typically don’t pay out-of-pocket for their medication.
Mr. Trump has previously expressed his dissatisfaction with high weight loss drug prices and referred to the drug as either the “fat pill” or “fat drug.” The administration is also working on initiatives to promote healthier foods in schools and the military, along with increasing physical activity in schools, with new dietary guidelines expected soon.