WASHINGTON (AP) — President Donald Trump unveiled a deal Thursday with drugmakers Eli Lilly and Novo Nordisk to expand coverage and reduce prices for their popular obesity treatments Zepbound and Wegovy.
The drugs are part of a new generation of obesity medications known as GLP-1 receptor agonists that have soared in popularity in recent years.
However, patients have faced access issues due to the cost—approximately $500 a month for higher doses—and inconsistent insurance coverage.
Starting next year, coverage for Medicare patients will expand under this new administration initiative, with some lower prices phased in for individuals without coverage. If approved, new pill versions of the treatments will cost $149 per month.
This announcement marks another effort by the Trump administration to address rising drug prices and cost-of-living concerns cited by voters. Another drugmaker, AstraZeneca, recently agreed to lower prescription costs for Medicaid following an executive order aimed at reducing pharmaceutical expenses.
Despite the government's assurances, it remains unclear how significantly consumers will experience these price reductions, as drug prices often fluctuate based on competition and insurance factors.
Challenges Ahead for Obesity Drugs
The obesity drugs Zepbound and Wegovy function by impacting hormones related to appetite and satiety, with clinical trials demonstrating weight loss of up to 22%. Patients typically begin with smaller doses that increase based on their individual needs. Due to the classification of obesity as a chronic disease, ongoing treatment is necessary to prevent weight regain.
While Eli Lilly and Novo Nordisk report substantial sales increases, with Zepbound sales tripling this year to over $9 billion, the high costs of these medications remain prohibitive for many Americans.
Medicare has not covered obesity treatments, with previous proposals under the Biden administration facing pushback from the Trump administration. Medicaid programs also typically offer limited support for these medications due to the anticipated high patient usage.
The monthly price tag of $500 is a significant barrier for those without insurance, according to healthcare professionals.
Political Context and Economic Awareness
This effort to make GLP-1 drugs more accessible coincides with the White House's broader strategy to show responsiveness to American struggles with rising costs across living essentials like food, housing, and healthcare. Recent election outcomes in Virginia and New Jersey highlighted the economy as a crucial voter concern, influencing Democratic wins.
The Trump administration frames its plan as an effort to alleviate burden on Americans rather than a gift to the pharmaceutical industry, emphasizing the need for fair pricing approaches that ensure patients aren't disproportionately financing drug development.
This deal aims to provide a structured coverage expansion for Medicare patients starting next year, with reports of a $50 copayment for eligible individuals and the TrumpRx program allowing lower drug prices for uninsured patients.
Medical Community's Response
Doctors express gratitude for potential pricing reductions. Dr. Leslie Golden shared that a significant number of her patients struggle with the current high costs. “Every visit it’s, ‘How long can we continue to do this? What’s the plan if I can’t continue?’” she stated, noting the financial struggles many face to maintain treatment.
Although Eli Lilly is already reducing initial prices for Zepbound, experts like Dr. Fatima Cody Stanford emphasize the need for more concrete details regarding how Medicare beneficiaries will benefit before they can fully endorse the changes. Dr. Angela Fitch expressed hope that this initiative could be a first important step toward improving access to these effective treatments amidst ongoing barriers.
