GLP-1 weight loss drugs will now be covered by Medicare and Medicaid—and available at a discount through TrumpRx

President Donald Trump announced on Thursday his administration has made a deal with two of the largest manufacturers of weight loss and diabetes drugs, agreeing to sell their medications to select Medicare enrollees for $245 a month, and at discounted prices for everyone else through TrumpRx.gov. 

Under the terms of the deal, Novo Nordisk and Eli Lilly have also agreed to sell their GLP-1 drugs directly to patients for roughly $350 for a month's supply, the White House added. Additionally, should the U.S. Food and Drug Administration (FDA) give the green light for an oral version, TrumpRx will be the place to get it cheap—at least at first.

“In the event that the FDA later approves the Wegovy pill, or certain similar GLP-1 drugs in each company’s pipeline intended to be taken orally rather than as a shot, the initial dose of those drugs will be priced at $150 per month through TrumpRx,” the announcement reads. 

It’s not clear what “initial dose” means, as it implies only the first month will be priced at such a discount. Broadly speaking, as TrumpRx.gov is not yet operational, there are lots of claims made by the administration and their partnering drug companies about how the direct-to-consumer prescription website will work.

Notably, the companies have entered these agreements to earn exemptions from Trump’s global tariffs on imports. When announcing TrumpRx alongside Pfizer, Trump invited other companies to sign up to trade most favored nation pricing for favorable import tax rates—namely a three-year pause. 

As for these GLP-1 drugs, according to the White House, the new prices represent what the drug companies will bill to the government, with Medicaid recipients paying $50 a month as a copay.

Medicaid, typically, has no co-pay associated with the cost of prescriptions. 

However, given that GLP-1 drugs are currently not covered by Medicare or Medicaid—or most private insurance—the announcement from Trump represents a big change in how the federal government sees these obesity treatments. And typically, when something is covered by public insurance programs, private payers eventually follow suit. 

The pricing sheet laid out by the White House stipulates that most of the discounts only apply to when substances are sold through TrumpRx. However, the rates for Medicaid and Medicare don’t carry that stipulation, implying patients covered under those plans will be free to use the pharmacy of their choice.