Health and Human Services Secretary Robert F. Kennedy Jr. is working on identifying and tackling the root causes of America’s obesity epidemic. In the meantime, the Trump administration wants to make sure that Americans have access to affordable diabetes and weight-loss drugs, specifically glucagon-like peptide-1 receptor agonists, better known as GLP-1 drugs.
To this end and as part of his months-long campaign to bring most-favored-nation prescription drug pricing to Americans, President Donald Trump has struck a deal with pharmaceutical giants Eli Lilly and Novo Nordisk, the manufacturer of Ozempic, to cut prices on their weight-loss drugs in exchange for Medicare coverage.
A senior administration official indicated on Thursday that since Trump issued his most-favored-nation pricing executive order in May, GLP-1 drugs “have been top of mind” — not just because of the pharmaceuticals’ apparent cardiometabolic benefits “but also because this is, again, an issue of fairness.”
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Per the terms of Trump’s deal with the two companies, “starting oral doses of GLP-1s will cost just $149 for everyone on Medicare, Medicaid, or Trump Rx,” said an official. “That’s roughly 1/9th of today’s list price.”
For Medicare, the manufacturers have reportedly agreed to reduce prices on GLP-1 drugs that are currently used for diabetes and other covered conditions to $245 per month across all other doses, added the official.
Savings generated by these price reductions will apparently be used to provide new coverage for GLP-1 drugs to patients struggling with obesity who face high metabolic or cardiovascular risk at the same monthly cost of $245.
As of 2020, over 100 million American adults were obese, and more than 22 million adults suffered from severe obesity, according to the Centers for Disease Control and Prevention.
While the adult obesity rate reportedly declined from 39.9% in 2022 to 37% this year — representing roughly 7.6 million fewer obese adults — Gallup recently indicated that diagnoses of diabetes have reached an all-time high of 13.8%.
Amid the glut of diabetes cases, there has been a significant increase in the number of U.S. adults who report taking GLP-1 drugs — from 5.8% in February 2024 to 12.4% in the latest quarter of 2025. The three-year decline in obesity among most age groups appears to correspond with the embrace of the weight-loss drugs.
When asked roughly how many patients on Medicare and Medicaid would be impacted by these changes, another administration official noted that in Medicare, around 10% of the population will be eligible for the standard access. While the drugs are approved for a much broader population, access has been constrained for “patients that will benefit clinically from it.”
There will reportedly be three tiers of patients in Medicare who will have access to these drugs for the purposes of addressing obesity and driving “cardiometabolic improvement”: those with a body mass index greater than 27 kg/m² suffering from pre-diabetes or established cardiovascular disease; patients with a BMI greater than 30 who have uncontrolled hypertension, kidney disease, and/or heart failure; and individuals with a BMI exceeding 35.
‘We do not believe that GLP-1s or drugs alone are somehow some silver bullet.’
“This is about making America healthy again,” said the second official. “This is about preventing strokes, this is about preventing heart attacks, and this is about preventing end-stage renal disease.”
The officials acknowledged, however, that cheaper drugs do not amount to a long-term solution to the problem of obesity.
“Make no mistake: We’re in a war against obesity. We do not believe that GLP-1s or drugs alone are somehow some silver bullet to make the … country healthy again,” said one official. “They are an important jump-start.”
In exchange for their cooperation, the pharma giants are gaining additional access to beneficiaries who wouldn’t otherwise be covered by Medicare for obesity indications, certainty from the Trump administration on its approach to drug pricing moving forward, and a commitment to invest in American manufacturing.
One Trump administration official told reporters that this initiative is expected to ultimately be cost neutral, stating, “This is really a win-win on all sides — for taxpayers, for Medicare beneficiaries, as well as for the companies.”
Last month, Trump announced an agreement with AstraZeneca that would guarantee every state Medicaid program across the country most-favored-nation drug prices on the pharma giant’s products. The previous month, he announced a similar deal with Pfizer.
“In case after case, our citizens pay massively higher prices than other nations pay for the same exact pill, from the same factory, effectively subsidizing socialism [abroad] with skyrocketing prices at home,” Trump said in a statement. “So we would spend tremendous amounts of money in order to provide inexpensive drugs to another country. And when I say the price is different, you can see some examples where the price is beyond anything — four times, five times different.”
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