Trump Administration Reaches Deal to Lower GLP-1 Drug Prices

On November 6, the Trump administration announced a new agreement with pharmaceutical companies Novo Nordisk and Eli Lilly to substantially reduce the cost of GLP-1 medications for millions of Americans, including Medicare beneficiaries. These medications, such as Wegovy and Zepbound, are commonly prescribed for obesity, diabetes, cardiovascular disease, and related conditions. This initiative is part of the administration’s TrumpRx program, a public-private effort aimed at improving affordability and access to prescription drugs.

Details of the TrumpRx Initiative

A TrumpRx website is expected to launch in early 2026, serving as a direct-to-consumer platform where patients can purchase discounted medications. Under the new pricing structure:

• Patients purchasing GLP-1 injectable drugs through TrumpRx will initially pay approximately $350 per month, with prices projected to decrease to $245 over the next two years for individuals paying out-of-pocket.
• Oral GLP-1 formulations, pending FDA approval, are expected to start at approximately $150 per month for entry-level doses.

Medicare and Medicaid Coverage

Beginning in mid-2026, Medicare will start covering injectable GLP-1 treatments—including Ozempic, Wegovy, Mounjaro, and Zepbound—for qualifying individuals. Eligible patients will include those diagnosed with severe obesity or obesity combined with conditions such as heart failure or kidney disease.

• The federal government will reimburse these drugs at a rate of $245 per month.
• Medicare beneficiaries will pay a copayment of up to $50 per month.
• State Medicaid programs will also gain access to these reduced prices, according to the administration.

Policy Background

The new pricing arrangement supports the administration’s “most favored nations” drug pricing strategy, which seeks to align U.S. prescription prices more closely with those in other developed countries. This approach was authorized through an executive order issued in May 2025, directing federal agencies to pursue agreements that make medications more affordable for American consumers.

What Employers Should Know

The TrumpRx program may offer an alternative for employees who do not qualify for full coverage under their employer-sponsored health plans—especially those seeking GLP-1 treatments for weight management.

As the initiative rolls out in 2026, it could serve as an additional resource for individuals managing obesity or related health issues. However, some program details, including coverage timelines and eligibility criteria, are still being finalized.

Employers are encouraged to monitor updates from the administration and the participating pharmaceutical companies as more information becomes available.