Trump says Medicare can now cover weight loss drugs like Ozempic

Medicare will cover weight-loss drugs under a deal between the Trump administration and drugmakers Eli Lilly and Novo Nordisk to cut prices for blockbuster diabetes and anti-obesity drugs.Why it matters: About 10% of Medicare enrollees will be newly eligible for coverage of GLP-1 drugs because of the deal, a senior administration official told reporters Thursday. The announcement could make it easier for seniors to use popular drugs like Novo Nordisk's Ozempic and Wegovy and Eli Lilly's Zepbound.It also lowers the price of the drugs for state Medicaid programs, which could increase coverage for lower-income Americans. The expanded Medicare coverage will be available through a pilot program, according to a statement from Novo Nordisk. The big picture: The manufacturers have agreed to cut the price Medicare pays for GLP-1s it already covers for diabetes and other indications to $245 per dose. That's about one-ninth of the current list price for the drugs, according to a senior administration official. Medicare spent $5.7 billion on GLP-1s to treat diabetes in 2022, per KFF. The savings generated from that lower price will be used to expand Medicare coverage of GLP-1s for more indications starting in mid-2026. Trump said Thursday that the deal will "save lives and improve the health of millions and millions of Americans.""These drugs have only been available for people who have wealth," Health Secretary Robert F. Kennedy Jr. said at Thursday's press conference before questioning what can be done for Americans living in rural areas or food deserts. Many of those people, he said, "are suffering from obesity and are locked into that system where they can only get ultra-processed foods," which only aggravates their potential for health problems. "This will be a lifesaver to them," Kennedy said.Zoom in: Coverage will be newly available to seniors who are severely obese with a body mass index of greater than 35, along with those who are overweight and have prediabetes or cardiovascular disease, and those who are obese and have advance kidney disease, heart failure or uncontrolled hypertension. Medicare enrollees will pay only a $50 copay out of pocket for GLP-1s, officials said. Between the lines: Medicare is currently engaged in negotiations under the Inflation Reduction Act to lower the prices it pays for Novo Nordisk's Ozempic, Rybelsus and Wegovy starting in 2027.This deal is not part of that process, an official said. How it works: Eli Lilly and Novo Nordisk will offer the $245 dose price for GLP-1s to all 50 states' Medicaid programs, and states will have the ability to opt into the prices. The drugs will also be available for cash pay on TrumpRx starting no later than January for $350 per dose or less, trending down to $245 over two years. In return for cutting prices, the drugmakers will get access to a new pool of patients, certainty around tariffs and priority review by the Food and Drug Administration for certain drugs, officials said. Oral GLP-1 tablets for obesity will be available across markets at $149 for a starting dose once approved, officials said. Novo Nordisk and Eli Lilly are both testing oral versions of their medications. What they're saying: "Novo Nordisk has always worked to secure affordable access to our innovative medicines, and today's announcement will bring semaglutide medicines to more American patients at a lower cost," CEO Mike Doustdar said in a statement. Eli Lilly CEO David Ricks said in a statement that the company is working with the Trump administration to "rebalance the global system, expand access and lower costs for Americans while also protecting our company's ability to both innovate and enhance manufacturing capacity." Go deeper: How Eli Lilly became the new king of the anti-obesity drug marketEditor's note: This story has been updated with details from Thursday's news conference.

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