Weight loss gets cheaper: New White House deal slashes prices of Ozempic and Wegovy

The cost of some of the most widely used weight loss medications in the United States is set to fall significantly under a new pricing agreement announced by the Trump administration. The deal, involving pharmaceutical companies Eli Lilly and Novo Nordisk, aims to reduce monthly costs for obesity drugs such as Ozempic, Wegovy and similar GLP-1 treatments, which have surged in popularity for both weight management and diabetes care.

Drop in prices of Ozempic and WegovyUnder the new arrangement, certain versions of these medications could be available for as little as $149 per month when purchased directly through the government’s upcoming consumer platform, expected to launch in early 2026. Currently, list prices can range from $1,000 to $1,350 per month, placing the drugs out of reach for many patients without private insurance coverage or discount programmes.

The pricing shift marks one of the most substantial interventions in the weight-loss drug market to date, as demand continues to grow and supply shortages have strained both insurance systems and consumer budgets.
Expanded Medicare access for eligible patients

The agreement will also broaden access to the medications for Medicare enrollees. Eligible patients who meet specific medical criteria — including those with obesity and additional health risks such as diabetes, cardiovascular disease or prediabetes — will pay a $50 copay. Drugmakers will reduce the amount Medicare pays to around $245 per treatment, helping offset costs to the federal programme.

Roughly 10% of Medicare beneficiaries could become eligible under this expanded coverage, according to senior administration officials.

A shift in federal drug policyThe move is part of a broader push by the administration to reduce drug prices by negotiating directly with manufacturers and offering regulatory incentives in exchange. Under the agreement, Eli Lilly and Novo Nordisk will receive:

• Reduced tariffs on imported pharmaceutical products
• Faster regulatory review for certain future medications
• Opportunities to participate in expanded federal reimbursement programmes

In return, the companies agreed to lower list prices and broaden affordability for both Medicare and Medicaid recipients.

Growing demand and economic pressureWeight-loss medications based on GLP-1 compounds have surged in use due to their effectiveness in helping reduce appetite and improve metabolic health. However, their high cost has sparked debate over equity, long-term affordability and the strain on public insurance budgets.

Supporters of the deal argue that lowering prices will reduce long-term healthcare costs by preventing obesity-related disease. Critics warn that even with price reductions, sustained demand could significantly increase overall spending if access becomes widespread.

What comes nextThe reduced pricing will go into effect in phases, with the first changes tied to the launch of the TrumpRx direct-to-consumer portal in 2026. Further reductions are planned over the following two years, particularly if oral GLP-1 formulations are approved.

For now, the agreement is being viewed as a major shift in how the federal government approaches weight-loss treatment — and as a sign that medications once seen as lifestyle-adjacent are now being treated as essential components of chronic disease management.