Trump deals with Lilly, Novo Nordisk could broaden obesity drug access

President Donald Trump on Thursday struck landmark deals with Eli Lilly and Novo Nordisk that could mark a turning point in how many people can access their costly blockbuster obesity drugs. 

Under the agreements, Medicare will start covering GLP-1s for obesity for certain patients for the first time beginning in mid-2026 – a shift that will open access to millions of older adults and could spur more employers and other private insurers to follow suit, some experts said. Novo Nordisk and Eli Lilly are also lowering the prices that all state Medicaid programs will pay for GLP-1s, but it’s up to states to opt into coverage. 

Obesity drug coverage among state Medicaid plans, employers and other private insurers remains spotty due to the $1,000 or more monthly list prices of existing GLP-1s, including Eli Lilly’s obesity injection Zepbound and Novo Nordisk’s competitor Wegovy. 

The limited insurance coverage has blocked out patients who can’t afford their hefty price tags. That lack of access has led to mounting pressure on health plans and the government to expand coverage — and the government agreements with drugmakers could mark a major shift.

“I think it’ll start with the government, start with Medicare, and the insurers will quickly follow,” Nick Fabrizio, an associate teaching professor in Cornell’s health policy program, told CNBC. “I do think that’s coming.”

“This is a great step towards trying to address a chronic and serious issue, and for those patients who may feel like they have no hope,” he said.

Roughly 8 to 9 million people in the U.S. are using GLP-1s, Eli Lilly CEO David Ricks said at a briefing with reporters on Thursday. The added Medicare coverage under the deal could bring in as many as 40 million new eligible patients, and prompt more commercial plans to cover the medicines, he said.

The deals could also address the inability of many patients with limited or no insurance coverage for obesity drugs to access them, by offering the treatments at a discount on the Trump administration’s direct-to-consumer website, TrumpRx.gov. 

The monthly out-of-pocket cost of existing injections and upcoming pills could range from $50 to $350 starting next year, depending on the dosage and insurance coverage a patient has. 

Still, there is a law prohibiting Medicare from covering weight loss drugs, so any changes would have to come from Congress. Eli Lilly’s Ricks told reporters Thursday that for now, the government will launch an initial pilot program in the spring of 2026 under a temporary legal mechanism. It would be voluntary for Medicare prescription drug plans, so “it may be possible that a few plans do not participate, but I would expect almost all do,” he said. 

But Ricks said that it will transition into a formal so-called Center for Medicare and Medicaid Innovation…