Good News on Coverage and Prices for Obesity Medicines
President Trump held a press event yesterday to issue some very welcome news on coverage and prices for obesity medicines. On prices, they are coming down. In reality, this is an extension of the ongoing trend of downward pressure on these prices that has been in play since the day that semaglutide and tirzepatide launched for treating obesity. Trump read from a script:
“Today I’m thrilled to announce that two of the world’s largest pharmaceutical manufacturers, Eli Lilly and Novo Nordisk, have agreed to offer their most popular GLP-1 weight loss drugs – I call them fat loss drugs – at drastic discounts.”
At this point, he began to ad-lib, saying “They’re very effective drugs. So far, I’ve never heard anything bad about them. I only hear good.” He turned to his Health Secretary, Robert F. Kennedy Jr., and said “Is there anything bad about them, Bobby?”
Kennedy had previously said that drug companies are counting on selling these drugs to Americans “because we’re so stupid and so addicted to drugs.” Yesterday, he had changed his tune.
“A Momentous Accomplishment”
At this event, Kennedy called the announcement a momentous accomplishment and even expounded on the importance of the move from the standpoint of health disparities in obesity care:
“Trump is the friend of the forgotten American. Obesity is a disease of poverty. And overwhelmingly, these drugs have only been available for people who have wealth.”
He also said:
“If we want to solve the chronic disease crisis, we have to tackle obesity. We’re going to see a decline in costs, but, more important, in the afflictions themselves.”
Throwing in a bit of health economics, Mehmet Oz, who leads CMS, said:
“We believe these deals, within two years, based on our health improvements, we will be budget neutral. These drugs will not cost us money. The American taxpayers will be getting their money back.”
Lower Costs and More Coverage
At the heart of the announcement is a lower cost to Medicare and Medicaid programs for semaglutide and tirzepatide. Administration officials said that Medicare beneficiaries will have access to these drugs for only a $50 copay. Expanded coverage of these drugs for obesity in Medicare will begin next year.
The drugs were promised to be available on the TrumpRx.gov website for $350 per month for people who pay out of pocket.
But here is where we note that the devil is in the details. It is one thing to say that these drugs will be covered. It is quite another to navigate the administrative hurdles that often stand in the way of actually getting clearance for a specific Medicare drug plan to pay up. These drug plans are run by pharmacy benefit managers (PBMs) who have many tricks up their sleeves.
A Quick Review for Oral Meds
The other good news in this flurry of announcements is that both oral semaglutide and orforglipron will get a new, super-expedited review at FDA. This means that Lilly now expects to have an approval for orforglipron in the first quarter of 2026. The company is on the verge of submitting to FDA. Novo Nordisk already has their application for oral semaglutide submitted.
When approved, the pledge was that these medicines will cost only $149 per month.
This Is a Lot
No two ways about it – this news is a lot to absorb. Buried in the details of implementation, we will likely find some surprises. But it is also surely good news. It reinforces the fact that the costs of these drugs are coming down and the value is recognized for being quite high. Even the skeptics are jumping onto the right track.
Click here, here, here, and here for more on this good news about coverage and prices for obesity medicines.
The Fool and His Money, political cartoon by Louis Dalrymple / Wikimedia Commons
Subscribe by email to follow the accumulating evidence and observations that shape our view of health, obesity, and policy.
November 7, 2025
