The White House is reportedly close to a groundbreaking agreement with pharmaceutical giants Eli Lilly and Novo Nordisk, aiming to slash prices for their weight loss drugs. This potential deal, which could be announced as early as this week, involves a significant reduction in the cost of the popular GLP-1 medications, Zepbound and Wegovy, from over $1,000 per month to a more affordable $149 per month. In exchange, Medicare would provide limited coverage for these drugs, benefiting certain Medicare beneficiaries. However, the scope of this coverage remains uncertain, as it's not yet clear if it will extend to private and public insurance or only to those paying in cash. The details of this plan are still subject to change, and the sources spoke on condition of anonymity due to lack of official authorization.
This potential agreement comes as part of President Trump's ongoing efforts to lower prescription drug prices, aligning them with those in other developed nations. The administration has already secured deals with Pfizer and AstraZeneca to reduce costs for some prescription drugs under Medicaid. Trump's initiative, known as the 'most favored nation' drug pricing push, was revived through an executive order in May, after being pursued unsuccessfully during his first term. The White House has been proactive in addressing the high cost of prescription drugs, with Trump stating in October that an agreement to lower the cost of weight loss drugs was imminent, promising a significant reduction from $1,300 to around $150.
Despite these efforts, the Biden administration proposed expanding coverage of GLP-1 drugs through Medicare and Medicaid, but the Trump administration rejected this plan. The drugs in question, Ozempic and Wegovy, are also part of the next round of Medicare drug price negotiations under the Inflation Reduction Act, which was signed into law by former President Joe Biden in 2022. The Trump administration was expected to finalize new prices for 15 drugs, including GLP-1s, by November 1st, but officials have shown less enthusiasm for negotiations, favoring executive orders and voluntary pricing agreements with drugmakers. The new prices are expected to be unveiled by November 30th.
The high cost of these weight loss drugs has sparked public scrutiny, with companies like Costco and Walmart offering discounted options for those without insurance. However, Medicare currently covers Wegovy for patients at risk of heart disease and Zepbound for sleep apnea, but not specifically for weight loss. The potential deal with Eli Lilly and Novo Nordisk could significantly impact the accessibility of these drugs for a wider range of patients, but the details remain under wraps as the negotiations continue.
