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Full Breakdown

Trump Administration Negotiates Lower Prices for Weight Loss Drugs

11/5/2025, 12:15:54 AM

Overview of the Agreement

The Trump administration is nearing a deal with pharmaceutical companies Eli Lilly and Novo Nordisk to significantly reduce the prices of their weight loss medications, Zepbound and Wegovy, to approximately $149 per month. This agreement would also expand Medicare coverage for these drugs, which are currently not covered for weight loss alone. The announcement is expected as early as this week, with President Donald Trump potentially revealing the details alongside pharmaceutical executives.

Details of the Proposed Deal

Sources indicate that the proposed agreement would allow the lowest doses of Zepbound and Wegovy to be sold at the reduced price in exchange for Medicare covering these medications for certain beneficiaries. Currently, the list prices for these drugs exceed $1,000 per month, although both companies have introduced lower cash prices amid public scrutiny. The deal is part of Trump's broader initiative to align U.S. drug prices with those in other developed nations, known as the "most favored nation" pricing strategy.

Implications for Medicare and Medicaid

If finalized, this agreement could set a precedent for private insurers, as Medicare policies often influence broader insurance practices. Currently, Medicare covers Wegovy for patients at risk of heart disease and Zepbound for sleep apnea, but not specifically for weight loss. The Biden administration had previously proposed expanding coverage for GLP-1 drugs through Medicare and Medicaid, but this was rejected by the Trump administration.

Official Statements & Responses

White House spokesperson Karoline Leavitt emphasized the administration's commitment to lowering drug prices, stating, "I won't get ahead of the president on any future announcements, but I will echo his strong commitment to bringing down drug prices in this country." Spokespeople for both Eli Lilly and Novo Nordisk confirmed ongoing discussions with the administration but did not provide specific details about the potential deal.

Criticism & Opposition

Critics have raised concerns about the implications of the Trump administration's approach to drug pricing, particularly regarding the rejection of the Biden administration's proposal to expand coverage for obesity treatments. Some health advocates argue that limiting coverage to specific conditions may restrict access for many patients who could benefit from these medications.

Conflicting Reports & Gaps

While the proposed price of $149 has been widely reported, it remains unclear whether this price will apply universally across all insurance types or only for cash payments. Additionally, the specifics regarding which Medicare beneficiaries would qualify for coverage are still not disclosed.

What's Next

The Trump administration is expected to finalize and announce the new pricing structure for these weight loss drugs by November 30. This announcement will likely be accompanied by further details on the Medicare coverage expansion and the anticipated launch of TrumpRx, a government initiative aimed at connecting consumers directly with drug manufacturers for discounted medications.