President Donald Trump announced a deal Thursday, Nov. 6 with drugmakers Eli Lilly and Novo Nordisk to cut prices of their popular weight-loss drugs and expand Medicare coverage of these medications for older adults.

The negotiated deals will allow Medicare and Medicaid coverage for Lilly's Zepbound and Novo's Wegovy, and consumers will be able to purchase drugs at discounted prices through the federal government's direct-to-consumer website, TrumpRx, which will launch in 2026.

"For years, politicians have talked about making health care affordable," Trump said during an Oval Office news conference announcing the price cuts. "But my administration is actually doing it."

The least expensive price − $149 per month − will apply to yet-to-launch oral versions of these weight-loss drugs. Lilly has sought priority Food and Drug Administration review of its oral drug, called orforglipron.

The drugmakers will sell injectable versions of these medications for an average of $350 per month, a price the drugmakers will reduce to about $250 over the next 24 months, a senior administration official said.

The discounts can vary depending on the dosage, drug company officials said.

The negotiated deals will expand access to millions of Medicare recipients who now must pay out-of-pocket for weight-loss medications Zepbound and Wegovy. Medicare drug plans cover Novo's Ozempic and Lilly's Mounjaro for Type 2 diabetes.

The drugmakers agreed to sell the medications to Medicare at an average prices of $245 per monthly dose. Qualifying Medicare enrollees will be charged a monthly copay of $50 to get the weight-loss drugs. Medicare expects to launch coverage of these medications by July 2026.

The announcement comes amid intensifying political jockeying around cost-of-living issues, with Democrats making affordability the central message in off-year elections that saw them sweep to victories across the country.

The cost of health care and health insurance have long been thorny political issues and central to the debate around reopening the government amid a record-long shutdown. Most Senate Democrats are refusing to vote for GOP-backed legislation to fund the government unless Republicans include a provision to extend pandemic-era health insurance subsidies.

Because Congress hasn’t extended pandemic-era subsidies that made Affordable Care Act plans less expensive for millions of Americans, many consumers will pay higher rates on their 2026 ACA insurance plans.

I'm on Medicare. Will I qualify for coverage?

Senior administration officials estimate about 1 in 10 Medicare recipients will qualify for weight-loss medications based on their height and weight and underlying medical conditions.

Medicare recipients with prediabetes and a body mass index, or BMI, of 27 or greater can get the medication. Those with a BMI of 30 or greater who also have kidney disease, heart failure or high blood pressure will qualify for coverage.

And those with severe obesity − a BMI of 35 or more − will be eligible for Medicare coverage of weight-loss drugs.

The Trump administration didn't release an estimate on how much extending Medicare coverage of these medications will cost the federal health program. But senior administration officials said the price tag will be offset due to the improved health of Americans on these medications.

States, which administer Medicaid programs, will have the option of extending weight-loss drug coverage to low-income families and others who qualify for Medicaid. Some states currently cover obesity drugs for Medicaid enrollees, but most do not.

In November 2024, the Biden administration drafted a rule that would've extended Medicare and Medicaid coverage for obesity medications beginning in 2026. At the time, the Centers for Medicare & Medicaid officials estimated the anti-obesity drugs would cost Medicare and Medicaid about $40 billion over a decade.

Do private insurance companies cover weight-loss drugs?

The weight-loss drugs known as glucagon-like peptide-1 drugs, or GLP-1s, suppress the appetite of users, leading to weight loss.

While insurers often cover GLP-1 drugs when prescribed for diabetes or other conditions such as heart disease or sleep apnea, more than half of employer insurance plans have refused to cover the medications for obesity. In 2024, 44% of all large employers covered GLP-1 drugs for obesity, up from 41% in 2023, according to Mercer, a benefits consultant.

While most working-age adults are covered by their employer insurance plans, senior administration officials said the negotiated deals might allow consumers to buy less expensive versions of these medications via TrumpRx or directly from the drug companies.

Sam's Club and Costco pharmacies now sell Novo Nordisk's blockbuster weight-loss drug Wegovy and the diabetes medication Ozempic for $499 per month.

What else is the Trump administration doing about drug prices?

Trump has already announced deals with several pharmaceutical companies to sell other discounted medications to federal health programs or TrumpRx.

The president has been pressuring drugmakers to lower their prices to what patients pay in other nations, a concept known as most favored nation pricing. On Sept. 30, Trump announced a most favored nation agreement with Pfizer to sell medications through Medicaid at a lower cost.

Last month, Trump also said EMD Serono, the largest fertility drug manufacturer in the United States, agreed to lower the price of a commonly used in vitro fertilization medication.

This article originally appeared on USA TODAY: Trump announces lower prices, Medicare coverage for popular weight-loss drugs

Reporting by Ken Alltucker and Zac Anderson, USA TODAY / USA TODAY

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