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White House Strikes Deals With Lilly and Novo to Cut GLP-1 Prices, Widen Medicare Access

The agreements trade manufacturer price concessions for tariff exemptions and faster reviews to open limited Medicare coverage starting next year.

Overview

  • Direct-purchase prices for injectable GLP-1 obesity drugs are set to start around $350 per month and decline to roughly $250 over two years, according to administration officials.
  • If the FDA clears oral GLP-1 pills, the lowest dose would be offered at $149 per month under the agreements.
  • Medicare coverage will extend next year to defined patient groups such as those with overweight plus prediabetes or cardiovascular disease, with officials estimating about 10% of beneficiaries could qualify.
  • Eligible Medicare patients would face a $50 monthly copay as manufacturers lower Medicare pricing to about $245, with some pricing changes reported to take effect by mid-2026.
  • A federal direct-sale channel called TrumpRx is slated to launch in early 2026, while state Medicaid uptake will depend on separate negotiations; a Novo Nordisk executive briefly fainted at the Oval Office event and was reported to be fine.