United States President Donald Trump recently signed a historic agreement. Our new agreement with pharmaceutical behemoths Eli Lilly and Novo Nordisk will lower prices by 60% across the board for their weight-loss drugs. This new effort aims to expand access to medications for Americans 65 years and older through Medicare. It further protects low-income patients by making sure they can get these medications through the Medicaid program. The agreement is poised to ensure healthcare access for almost 150 million Americans. This is an incredibly ambitious step in the right direction to address the country’s obesity epidemic and other adverse health outcomes.
This deal will allow Eli Lilly and Novo Nordisk to cut prices by up to 89%. They project lowering those costs by about 25 percent from today’s cash prices for commercial health plans. This reduction is part of a broader strategy to make weight-loss treatments more accessible, particularly for vulnerable populations in the United States. The initiative is a big step in the right direction, supporting the administration’s long-time commitment to addressing growing healthcare costs and advancing the public’s health.
Details of the Pricing Agreement
Eli Lilly’s commitment to this agreement goes well beyond weight-loss drugs. The company will similarly bring diabetes medications like Emgality, Trulicity, and Mounjaro onto its DTC platform. And we’ll be releasing them with prices that are competitively lower. These are hefty markdowns as you can look forward to 50-60% off their current list prices. This step will help reduce the out of pocket costs for patients who depend on these life-saving therapies.
Eli Lilly and Novo Nordisk are finally releasing starter doses of their weight-loss pills. They are going to do this at an amazingly low $149 per member per month for Medicare and Medicaid enrollers. Even better, these starter doses will be accessible through the newly-minted direct-to-consumer TrumpRx site. This project is intended to make it easier for people to get affordable medications and know what they’ll pay before they get there.
Beginning in November, TrumpRx will provide injectables and pills for an average monthly cost of no more than $350. Our experts expect this price to fall to around $245 within the next two years. For patients enrolled in Medicare or Medicaid, the price of these injectable GLP-1s will decrease to $245 per month. This would be a tremendous cut from the current list price, which is more than $1,000 per month. Cash buyers now have an opportunity at purchasing monthly supply at $499. Key to this new pricing structure is ensuring medications are affordable to a wide patient demographic and especially low income and vulnerable patients.
Expanding Coverage Under Medicare and Medicaid
The deal goes further than merely drug price cuts. The legislation includes provisions for more comprehensive coverage and access under Medicare and Medicaid. Unsurprisingly, the government has plans to expand the coverage for GLP-1s to overweight patients who have serious prediabetes or heart issues. Coverage will expand to include obese patients with comorbidities. It will eventually expand to severely obese Medicare beneficiaries, who account for an additional 10 percent of all Medicare beneficiaries.
This expansion is a critical step toward addressing the obesity epidemic that continues to increase throughout the United States. It is an issue that connects deeply to public health and healthcare expenditures. By increasing access to effective weight-loss medications, the government hopes to improve health outcomes among millions of Americans struggling with obesity-related conditions.
Today, roughly 2.7 million Americans are using Lilly’s injectable Zepbound, underscoring the incredible demand for effective weight-loss treatments. The anticipated price reductions and expanded coverage under this agreement could offer substantial relief and support for those seeking treatment options.
Implications of the Agreement
The deal between President Trump, Eli Lilly, and Novo Nordisk signifies a pivotal moment in the ongoing discourse surrounding healthcare affordability and accessibility. The initiative makes very significant price cuts to address financial impediments. Furthermore, it increases affordability through expanded coverage options – driving down the cost and improving access to vital medical treatment for millions of Americans.
This joint effort from the government and the pharmaceutical industry paints a picture of a determined effort to improve the inclusivity of healthcare. As the program rolls out, stakeholders will monitor its impact on patient access and overall health outcomes across the nation. The administration’s focus on reducing drug prices aligns with broader public health goals aimed at improving quality of life for millions of Americans.
