These medications, which cost upwards of $1,000 a month without insurance, have been out of reach for many Americans despite their widespread use. Trump’s latest initiative is part of his ongoing efforts to bring down drug prices and increase access to critical healthcare treatments for lower-income and elderly populations. But while the move is expected to reduce costs, the scope of its impact will depend on eligibility and participation in government programs.
Reduced Prices for Medicare and Medicaid Recipients
As part of the agreement, Eli Lilly and Novo Nordisk have committed to offering their GLP-1 drugs at discounted rates for certain groups of Americans. According to the Trump administration, starting in mid-2026, Medicare recipients will pay as little as $50 a month for drugs like Wegovy and Zepbound, a drastic reduction from the current prices of over $1,000 per month. Medicaid patients will also benefit from lower costs, though the availability will depend on the decisions of individual states to participate in the program.
The weight-loss drugs, originally developed to treat diabetes, have proven effective for patients with obesity, leading to their rise in popularity. However, high out-of-pocket costs and limited insurance coverage have made them largely inaccessible to many who could benefit from them. Under this new arrangement, about 10% of Medicare beneficiaries, particularly those with conditions like obesity or diabetes, are expected to be eligible for the reduced prices.
As Health Secretary Robert F. Kennedy Jr. explained, the new deals will have a significant impact on Americans suffering from obesity, which is responsible for numerous chronic health conditions. “Obesity is a disease of poverty,” Kennedy remarked. “This will be a lifesaver to them.”
TrumpRx to Offer Discounted Drugs Directly to Consumers
In addition to expanding access through Medicare and Medicaid, Trump has introduced a new government-run initiative, TrumpRx, designed to lower prices for Americans purchasing weight-loss drugs directly from the pharmaceutical companies. Set to launch in 2026, TrumpRx will serve as an online platform where eligible individuals can buy medications like Wegovy and Zepbound at discounted rates, bypassing traditional insurance routes.
The platform will offer GLP-1 injections at an initial cost of around $350 per month, with prices expected to drop to approximately $250 over the following two years. Oral versions of the drugs, still awaiting approval by the U.S. Food and Drug Administration, will be available for a starting price of $149 per month. These discounts are aimed at making the medications more accessible for Americans who might otherwise face high out-of-pocket expenses.
The new pricing agreements are part of a broader strategy by Trump’s administration to enforce “most-favored-nation” pricing, which aligns U.S. drug prices with those paid by other countries, often much lower than in the U.S. Trump has long criticized the disparity between American drug prices and those in other developed nations, calling it an unfair burden on American consumers.
As part of the deal, Eli Lilly and Novo Nordisk will also be exempt from certain tariffs for the next three years, offering the pharmaceutical giants additional financial relief while simultaneously expanding access to their drugs at more competitive prices.
Looking Ahead: Will the Deals Make a Difference?
While the new deals are set to offer considerable savings for certain groups, there are questions about the long-term impact of these price reductions. Analysts note that the deal is a victory for Trump’s “America First” approach to drug pricing, but caution that the complex nature of the U.S. healthcare system could limit the overall benefits. For instance, not all private insurers will necessarily follow suit, and the actual availability of the reduced prices for Medicaid patients may vary based on state participation.
Still, the move represents a step forward in addressing the affordability crisis surrounding obesity treatments. With nearly 40% of American adults affected by obesity, according to the Centers for Disease Control and Prevention, these changes could have wide-reaching effects on public health in the years to come.
In the end, the initiative aims to reduce drug prices, provide more equitable access to healthcare, and ease the financial burden on millions of Americans. If successful, it could set a new precedent for how the U.S. addresses the high cost of medications, particularly those that target chronic health conditions like obesity.
