Trump’s drug price deal could bring relief to the states Image By HPN Staff Key Points The Trump Administration’s agreement with Novo Nordisk and Eli Lilly will cut the cost of GLP-1 drugs like Wegovy and Zepbound from about $1,000+ per month to $50–$350, making them far more accessible. Individuals on federal health programs who qualify for obesity treatment or type 2 diabetes care will now be eligible for reduced-cost prescriptions. Broader access to GLP-1s could lower long-term healthcare costs, address a $173 billion obesity burden, and improve public health and military readiness across the U.S. Patients struggling with obesity will have greater access to the drugs that can help them, at a much lower cost. The Trump Administration has negotiated a deal with pharmaceutical companies Novo Nordisk and Eli Lilly for GLP-1 drugs such as Zepbound and Wegovy. Those drugs that typically cost more than $1,000 per month will now see an out-of-pocket cost of $50-$350 per month. The efficacy of Glucagon-like peptide-1 (GLP-1) in reducing weight and combating obesity has led several states to extend coverage of the popular drug under Medicaid and state-run plans. However, the expense of covering those drugs has raised concerns and prompted officials to weigh the short-term costs against the potential long-term benefits. Now, those who are on Medicare and Medicaid and qualify will be eligible for reduced prices. Why It Matters Obesity is estimated to cost the U.S. healthcare system $173 billion annually. The disease of obesity is linked to 13 types of cancer. Additionally, only two in five adults meet weight and fitness requirements to enter the military, according to the CDC. As of August 2024, 13 states had approved Medicaid coverage of GLP-1s for both weight loss and type-2 diabetes, while another four approved Medicaid coverage of the drug for type-2 diabetes only. Since that time, one of those 13 states, North Carolina, has reversed course and dropped Medicaid coverage for weight-loss services due to budgetary constraints as of Oct. 1. Still, some medical professionals say obesity is a disease and weight-loss drugs should be considered a medical necessity for those who need them. More than 100 million people are obese in the U.S. Dr. Angela Fitch, the CEO of knownwell, a weight-management health company, and the former president of the Obesity Medicine Association, said that numerous health conditions are often the result of obesity. Those conditions are typically covered, she said, but the root case, obesity itself, is not. Further Background GLPs trigger the release of insulin and help to stabilize blood sugar levels. The drugs, initially approved for the treatment of type 2 diabetes, have proven extremely effective in helping with weight loss in obese patients by regulating appetite. The Food and Drug Administration (FDA) has approved several GLP-1s for type 2 diabetes treatment — including the popular Ozempic, a form of semaglutide — and has more recently approved three: Wegovy (semaglutide), Saxenda (liraglutide), and Zepbound (tirzepatide), for weight loss. Prior to the deal with Trump, some pharmaceutical companies, such as Novo Nordisk and Eli Lilly, were offering affordability options for patients who struggled with access due to cost. SUGGESTED STORIES Colorado drug affordability board faces suit over price fixing For the second time, pharmaceutical company Amgen has filed suit against the Colorado Prescription Drug Affordability Review Board (PDAB) for capping the price of its autoimmune drug, Enbrel. The cap is supposed to take effect in 2027 and would limit the price of the drug t Read more Michigan House bill will increase drug price transparency This is a lightly edited excerpt of testimony provided to the Michigan House’s Health Policy Committee. The federal 340B program requires drug makers to sell their products to some hospitals at a discount. Hospitals and contract pharmacies can then resell them and p Read more Colorado drug price cap raises concerns over access and innovation Colorado’s Prescription Drug Affordability Review Board (PDAB) last week became the first state to set a price cap on a specific prescription drug, limiting a 50-milligram dose of Enbrel, used to treat rheumatoid arthritis, to $600. Since its introduction in 1998, Enbrel’s Read more
Colorado drug affordability board faces suit over price fixing For the second time, pharmaceutical company Amgen has filed suit against the Colorado Prescription Drug Affordability Review Board (PDAB) for capping the price of its autoimmune drug, Enbrel. The cap is supposed to take effect in 2027 and would limit the price of the drug t Read more
Michigan House bill will increase drug price transparency This is a lightly edited excerpt of testimony provided to the Michigan House’s Health Policy Committee. The federal 340B program requires drug makers to sell their products to some hospitals at a discount. Hospitals and contract pharmacies can then resell them and p Read more
Colorado drug price cap raises concerns over access and innovation Colorado’s Prescription Drug Affordability Review Board (PDAB) last week became the first state to set a price cap on a specific prescription drug, limiting a 50-milligram dose of Enbrel, used to treat rheumatoid arthritis, to $600. Since its introduction in 1998, Enbrel’s Read more
