Donald Trump announces lower prices for weight-loss drugs, expanded Medicare eligibility
President Trump is expected to announce that two large drug companies will lower the prices of GLP-1 medications, which are used to treat diabetes and help with weight loss. In return, the government will make it easier for more people on Medicare to qualify for these drugs.
The two companies involved are Novo Nordisk, based in Denmark, which makes Ozempic, Rybelsus, and Wegovy, and Eli Lilly, based in Indianapolis, which makes Zepbound. Both companies have agreed to sell their drugs to Medicare at a reduced rate and to give direct discounts to the public through a new website called TrumpRx, which will launch in early 2026.
This deal is part of a larger effort by the Trump administration to bring down drug costs and encourage companies to manufacture more products in the United States. It also helps the drug companies avoid a potential 200% tariff that Trump had threatened to place on the pharmaceutical industry.
The announcement comes at a time when the cost of healthcare and prescription drugs is one of the biggest concerns for voters. High prices have been a major political issue, especially after Republicans lost key elections in New Jersey and Virginia, where affordability was a top concern.
In exchange for cutting prices, the government will expand who can get these drugs under Medicare. Seniors who are severely overweight will now be able to get weight-loss drugs even if they don’t have diabetes, and people with related health issues will also find it easier to qualify.
Officials said that people with private health insurance—about two-thirds of Americans—will also benefit. Insurance companies will gain access to the same lower prices, estimated to be about 25% cheaper than current prices. Some insurers may even start letting people buy the drugs directly at discounted cash prices and still count those purchases toward their insurance deductibles.
White House officials said this deal is good for everyone. Drug companies get stability and protection from tariffs, the government helps more people afford important medicines, and the overall cost to taxpayers should balance out over time.
The price cuts will happen gradually. When TrumpRx launches, the average price of injectable GLP-1 drugs will start at about $350, down from around $500 today, and will fall to about $245 within two years. Pills that are still being developed could start at about $149 once they’re approved. For Medicare patients, the copay will be $50.
