U.S. News
Trump Pushes for Cheaper Obesity Drugs, Medicare Expansion
By Jake Beardslee · November 6, 2025
The Trump administration is finalizing agreements with pharmaceutical giants Eli Lilly and Novo Nordisk to reduce the prices of popular obesity drugs and extend Medicare and Medicaid coverage to millions of Americans, according to reports from The Wall Street Journal and Endpoints News.
Major Drug Price Cuts
The plan, expected to be officially announced on November 6, would lower the cost of Lilly’s Zepbound and Novo Nordisk’s Wegovy to $149 per month for the lowest dosage. In exchange, the drugs—currently not covered by Medicare as obesity treatments—would be included under the federal program for older adults and people with disabilities.
Medicare Expansion and Direct Sales
In addition to expanded Medicare and Medicaid access, The Wall Street Journal reported that the administration is negotiating a deal for some obesity medications to be sold through the government’s TrumpRx direct-to-consumer website, which is slated to launch in 2026.
Novo Nordisk confirmed ongoing talks, stating the company “is engaged in constructive discussions with the administration.” Eli Lilly did not respond to requests for comment.
Trump’s Pressure on Big Pharma
President Donald Trump has repeatedly pushed for lower drug prices, advocating for “most favored nation” pricing—aligning U.S. drug costs with those in other developed nations. On September 30, he announced a similar deal with Pfizer to provide lower-cost medications through Medicaid. Last month, Trump also revealed an agreement with EMD Serono to reduce the price of a widely used fertility drug.
Growing Demand for GLP-1 Drugs
Drugs like Wegovy and Zepbound—classified as glucagon-like peptide-1 (GLP-1) drugs—curb appetite and promote significant weight loss. However, most insurers currently refuse to cover them for obesity treatment. A 2024 Mercer survey found that only 44% of large employers offered coverage for such drugs, up slightly from 41% in 2023.
Continuity from Biden-Era Proposal
The new move builds on a Biden administration initiative announced in late 2024, which proposed Medicare and Medicaid coverage for GLP-1 drugs beginning in 2026. That rule, if finalized, would make approximately 3.4 million Medicare and 4 million Medicaid beneficiaries eligible for obesity treatment coverage.