President Donald Trump has just unveiled a game-changer in the fight against skyrocketing drug costs. This bold move could reshape how millions access life-altering treatments.
Trump announced on Thursday a historic agreement with pharmaceutical giants Eli Lilly and Novo Nordisk to drastically reduce prices on obesity drugs, including upcoming oral options, as reported by CNBC. Starting in 2026, these deals will extend coverage to Medicare and Medicaid beneficiaries while offering discounted rates directly to consumers via a new TrumpRx.gov platform launching in January.
These GLP-1 drugs, often priced over $1,000 monthly, have been out of reach for many who need them to combat obesity and related health risks. Trump’s push ties U.S. prices to the lowest rates abroad, a sharp jab at the inflated costs Americans have endured for too long.
Under the new terms, Medicare will cover obesity drugs for select patients starting mid-2026, with copays as low as $50 per month for approved uses. Starting doses of upcoming pills from both companies will be priced at $149 monthly for Medicare, Medicaid, and TrumpRx users.
Existing injections like Wegovy and Zepbound will launch at $350 per month on TrumpRx, dropping to $245 over two years. This isn’t just a discount; it’s a signal that the days of Big Pharma’s unchecked pricing may finally be numbered.
For Novo Nordisk, an oral version of Wegovy could hit shelves by year-end, while Lilly’s orforglipron pill might launch next year with expedited FDA review. These lower prices aren’t charity; they’re a calculated response to Trump’s “most favored nation” policy, which pressures companies to match global lows or face tariffs.
Trump didn’t mince words in the Oval Office, stating, “They’ve often cost consumers more than $1,000 per month, some a lot more than that... That ends starting today.” Such a blunt acknowledgment of the burden on everyday folks cuts through the usual political fog, though skeptics might wonder if the rollout will match the rhetoric.
Health and Human Services Secretary Robert F. Kennedy Jr. added, “This is going to have the biggest impact on the American people.” His claim of 125 million pounds lost by next year sounds ambitious, but if access truly expands, the health benefits could indeed be seismic, even if the math feels optimistic.
Medicare’s pilot program will target about 10% of its 66 million beneficiaries, focusing on those with specific obesity-related conditions or high BMI thresholds. This isn’t a free-for-all, but a targeted effort to prioritize clinical need over blanket access, a pragmatic move that avoids bankrupting the system.
Eli Lilly and Novo Nordisk aren’t just slashing prices for show; they’ve committed to $245 monthly rates across non-starting doses for all 50 Medicaid programs, if states opt in. They’ve also pledged to match most favored nation pricing on new drugs and share savings from foreign price hikes, a nod to Trump’s broader agenda.
Lilly’s CEO David Ricks called this “a pivotal moment in U.S. health care policy,” framing it as a win for the nation’s health. While his enthusiasm is predictable, the real test will be whether these discounts hold up under market pressures or quietly creep back up.
Novo Nordisk’s CEO Mike Doustdar echoed the sentiment, noting, “today’s announcement will bring semaglutide medicines to more American patients at a lower cost.” It’s a nice soundbite, but the proof will be in whether patients actually see these savings without hidden catches.
This deal sidesteps earlier proposals, like one from the prior administration that would have cost taxpayers billions over nearly a decade. Trump’s team scrapped that plan, opting for a framework that leans on negotiation and market pressure rather than endless government spending.
Critics of past policies argued that covering obesity drugs could offset costs of treating related conditions down the line, and this agreement tests that theory on a grand scale. If successful, it could quiet the naysayers who see drug coverage as a bottomless pit of expense.
Ultimately, this move challenges the progressive notion that only vast federal overhauls can fix healthcare pricing, proving that strategic deals can deliver results without drowning in red tape. It’s a win for Americans tired of being gouged, and a reminder that leadership, not ideology, drives change.
