Trump plans to reveal reduced prices for weight-loss medications and broader Medicare eligibility.

Trump’s Announcement on Drug Price Reductions

Later today, President Trump is set to reveal that two prominent pharmaceutical companies will be cutting the prices of GLP-1 medications, which are often used for diabetes treatment and weight management. Additionally, the government plans to broaden eligibility for these drugs under Medicare.

Novo Nordisk, based in Denmark, produces Ozempic, Rybelsus, and Wegovy. Meanwhile, Eli Lilly, headquartered in Indianapolis and known for making Zepbound, has reached an agreement to offer its product to Medicare at a reduced “most-favored-nation” tax rate. Consumers will also benefit, as discounts will be available on the forthcoming TrumpRx website, expected to go live in early 2026, according to officials.

This deal is part of a trend, really, aimed at averting Trump’s threatened 200% tariffs on the pharmaceutical sector, all while he emphasizes the need to bring manufacturing jobs back to the U.S.

Interestingly, timing plays a crucial role here. With affordability becoming such a pressing issue for voters as the midterm elections approach, Republicans are facing challenges, particularly in gubernatorial elections in New Jersey and Virginia, according to exit polls.

In a response to this ongoing concern, the government is loosening eligibility requirements for seniors in the Medicare program, which includes focusing on weight-loss prescriptions for individuals severely affected by obesity, while also broadening comorbidity criteria for others.

It’s important to note, about two-thirds of Americans with private health insurance might also gain from these changes, which is a significant number.

Officials highlighted that commercial insurers would also have access to these lower prices, estimating them to be at least 25% lower than current market rates. A White House official mentioned that some insurance companies are even permitting beneficiaries to buy products through the spot market, allowing those expenses to count toward their deductibles and out-of-pocket costs.

This agreement is being framed as beneficial for all parties involved. One administration official noted that companies are gaining certain assurances regarding tariffs and drug pricing strategies. Moreover, they argued that an expanded access for beneficiaries not covered by Medicare for bariatric prescriptions means more patients can take advantage of these treatments, which could be good news for taxpayers and businesses alike. The expectation is that this shift will end up being cost-neutral over time.

The plan lays out a phased approach for lowering drug prices. With the introduction of TrumpRx, the average price for injectable medications should drop to below $350 at launch, down from about $500 currently. Over the next two years, this is expected to decrease further to around $245. If approved, an oral version of the drug will kick off at a price of $149.