President Donald Trump has announced a landmark deal aiming to expand Medicare coverage to include certain weight-loss medications, a move that could dramatically change access to these treatments for millions of older Americans. On November 6, Trump revealed that his administration had struck agreements with Eli Lilly and Novo Nordisk, the makers of popular weight-loss drugs including Ozempic and Wegovy, to reduce costs and allow for broader Medicare coverage starting in 2026.
TL;DR
- President Donald Trump announced a deal to expand Medicare coverage for weight-loss medications starting in 2026.
- Agreements with Eli Lilly and Novo Nordisk will significantly reduce costs for Ozempic and Wegovy.
- New pricing will make Ozempic and Wegovy $350 monthly via TrumpRx.gov platform.
- Other oral medications will cost $145 or less for Medicare and Medicaid recipients.
As part of the agreement, the cost of GLP-1 medications, which are prescribed for both diabetes and weight management, will be significantly reduced for individuals covered by Medicare and Medicaid. Ozempic and Wegovy, previously costing $1,000 and $1,350 monthly, will now be priced at $350 per month when acquired via the TrumpRx.gov platform, scheduled to debut in January 2026, as stated by The White House's official announcement. Additionally, other treatments, such as future oral medications, will be accessible for a monthly cost of $145 or less for Medicare and Medicaid recipients, as detailed in a background press briefing reported by CNBC.
“We’re going to be paying, instead of $1,300, you’ll be paying about $150,” Trump said in mid-October concerning a distinct drug price agreement. At that juncture, Centers for Medicare and Medicaid Services administrator Mehmet Oz indicated that discussions were continuing.
Existing Limitations and Evolving Guidelines
Until now, Medicare had been prohibited by law from covering medications prescribed specifically for weight reduction, a policy rooted in the 2003 Medicare Modernization Act, as noted by health news service KFF. Recent FDA approvals of new uses for drugs like Wegovy, especially for reducing the risk of heart attacks and strokes in overweight individuals with cardiovascular disease, have started to open the door for broader Medicare coverage. The Centers for Medicare & Medicaid Services (CMS) recently signaled that Part D plans can now add some of these drugs to their formularies, provided they have a medically accepted use that isn’t specifically excluded.
Actual Medicare coverage for weight loss alone, rather than for accompanying conditions such as diabetes or heart disease, has fallen short, largely because of enduring federal limitations and worries about the potential financial burden on the system.
Costs and Fiscal Concerns
The fiscal implications of the new coverage policy are significant. The Congressional Budget Office (CBO) has estimated that covering these anti-obesity drugs through Medicare could increase federal spending by at least $35 billion from 2026 through 2034, with average costs per user around $5,600 in 2026, though competition and negotiations could drive these numbers lower over time. The national debt topped $38 trillion just weeks ago, with budget watchdogs at the Committee for a Responsible Federal Budget and the Peter G. Petersen Foundation decrying the runaway, escalating nature of America’s insolvency.
Obesity affects about 40% of U.S. Adults, according to the Centers for Disease Control and Prevention (CDC), and nearly 39% of Americans age 60 and older are affected, although obesity rates have started falling in many states for the first time in a decade, likely due to weight-loss medication’s impact.