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Trump reaches significant agreement with pharmaceutical companies Lilly and Novo regarding obesity medications and Medicare.

Trump reaches significant agreement with pharmaceutical companies Lilly and Novo regarding obesity medications and Medicare.

Addressing America’s Obesity Crisis

Robert F. Kennedy Jr., the Secretary of Health and Human Services, is currently focused on pinpointing the underlying reasons behind the obesity epidemic in the United States. At the same time, the Trump administration aims to ensure affordable access to medications for diabetes and weight loss, particularly targeting glucagon-like peptide-1 receptor agonists, often referred to as GLP-1 drugs.

As part of a broader campaign aimed at introducing most-favored-nation pricing for prescription drugs, President Trump has reached agreements with pharmaceutical companies like Eli Lilly and Novo Nordisk, known for producing Ozempic. These deals are intended to lower the costs of weight-loss medications in exchange for Medicare coverage.

A senior official stated that following the executive order announcement in May, GLP-1 drugs have become a primary focus—not only due to their cardiometabolic advantages but also because they touch on issues of equity.

According to the terms of the agreement with these companies, starting GLP-1 treatment for patients enrolled in Medicare, Medicaid, and TrumpRx will cost only $149, which is a fraction of the current price.

Reportedly, manufacturers also agreed to cut the monthly cost of GLP-1 drugs treating diabetes and other conditions to $245 for different dosages under Medicare.

This price reduction could help expand coverage for patients with obesity who are at increased metabolic and cardiovascular risk, maintaining the $245 monthly charge.

Statistics from 2020 indicate that over 100 million American adults are classified as obese, with more than 22 million falling into the severely obese category, as reported by the Centers for Disease Control and Prevention. Interestingly, the adult obesity rate has seen a decline from 39.9% in 2022 to 37% this year, suggesting that about 7.6 million fewer adults are now categorized as obese, even as the diabetes rate has surged to a record high of 13.8%.

Interestingly, the percentage of U.S. adults taking GLP-1 medications has also significantly increased, rising from 5.8% in February 2024 to 12.4% in the most recent quarter of 2025. This drop in obesity rates among various age groups seems to align with the broader adoption of weight-loss drugs.

When asked how many Medicare and Medicaid patients would be influenced by these changes, another administration official estimated that about 10% of the Medicare population might qualify for standard access. Although these medications have gained wider approval, access remains limited for those who could truly benefit.

Medicare plans to offer three tiers of eligibility for patients with obesity in order to promote improved cardiometabolic health. This includes individuals with a BMI over 30 and those facing uncontrolled hypertension, kidney disease, or heart failure, as well as individuals with a BMI over 35.

“It’s important to note that GLP-1 or similar drugs are not, and won’t be, the ultimate solution,” one official noted. They stressed that this initiative is really about making the nation healthier, reducing risks of strokes, heart attacks, and severe kidney diseases.

However, officials admit that simply providing cheaper drugs is not a sustainable long-term fix for obesity. “We are in a battle against obesity. We recognize that while these drugs can serve as important starting points, they are not a miracle cure,” one official stated.

In return for cooperation, pharmaceutical companies are gaining broader access to beneficiaries not covered by Medicare for obesity-related treatments, along with assurances from the Trump administration regarding drug pricing and commitments to invest in domestic manufacturing.

An official described the initiative as potentially cost-neutral, framing it as a win-win for taxpayers, Medicare beneficiaries, and businesses alike.

Last month, President Trump revealed an agreement with AstraZeneca, ensuring that the company’s products would be granted most-favored-nation pricing across all state Medicaid programs. Similar arrangements were made with Pfizer.

President Trump remarked on the discrepancies in drug pricing, noting that citizens often pay significantly higher amounts compared to what other countries pay for the same medications produced in identical manufacturing contexts. “With rising domestic prices, we’re aiming to provide more affordable options abroad as well.” He emphasized the stark price differences, sometimes by factors of four or five.

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