Watch: Trump announces an agreement to expand coverage and reduce the costs of obesity medications

WASHINGTON (AP) — President Donald Trump on Thursday unveiled an agreement with drugmakers Eli Lilly and Novo Nordisk to expand coverage and lower prices for popular obesity treatments Zepbound and Wegovy.

Watch the live stream in our video player above.

These drugs are part of a new generation of obesity drugs known as GLP-1 receptor agonists that have risen in popularity in recent years.

But access to the drugs has been a persistent problem for patients because of their cost — about $500 a month for higher doses — and insurance coverage has been spotty.

Obesity drug coverage will expand to Medicare patients starting next year, according to the administration, which said some of the lower prices will also be phased in to patients without coverage. Initial doses of the new versions of the treatments would cost $149 per month if approved.

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Thursday’s announcement is the latest attempt by the Trump administration to rein in high drug prices in its effort to address cost-of-living concerns among voters. Drugmakers Pfizer and AstraZeneca recently agreed to lower the cost of Medicaid prescription drugs after an executive order in May set a deadline for drug companies to voluntarily lower prices or face new limits on what the government will pay.

As with other deals, it is not clear how much consumers will feel the lower prices. Drug prices can vary based on competition for treatment and insurance coverage.

Obesity medications are becoming increasingly popular, but expensive

Obesity medications work by targeting hormones in the gut and brain that affect appetite and feelings of fullness. In clinical trials, it has helped people lose between 15% and 22% of their body weight — up to 50 pounds or more in many cases.

Patients taking these medications usually start with smaller doses and work up to larger amounts, depending on their needs. Experts say that because obesity is considered a chronic disease, they need to take treatment indefinitely or risk regaining the weight.

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The fast-growing treatments have proven particularly profitable for pharmaceutical companies Eli Lilly and Co. and Novo Nordisk. Lilly recently said Zepbound’s sales have tripled so far this year to more than $9 billion.

But for many Americans, its cost has put it out of reach.

Medicare, the federally funded coverage program for people 65 and older, did not cover obesity treatments. Joe Biden, President Donald Trump’s predecessor, proposed a rule last November that would have changed that. But the Trump administration canceled it last spring.

Few state or federally funded Medicaid programs, for low-income people, provide coverage. Employers and insurance companies that provide commercial coverage are wary of paying for these drugs in part because of the large number of patients who might use them.

Doctors say the $500 monthly price for higher doses of the treatments makes them unaffordable for those without insurance.

Medicare now covers the cost of medications for conditions such as type 2 diabetes and cardiovascular disease, but not for weight loss alone.

Trump shows he is in touch with cost of living concerns

The effort to lower cost barriers to popular GLP-1 drugs comes as the White House looks to demonstrate that Trump is in touch with Americans’ frustrations over the rising costs of food, housing, health care and other necessities.

Republican gubernatorial candidates in New Jersey and Virginia faced crushing defeats in Tuesday’s elections, with voters’ pessimistic expectations about the economy appearing to be a motivating factor in the two races.

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Nearly half of Virginia voters said “the economy” was the most important issue, and about 6 in 10 of those voters chose Democrat Abigail Spanberger for governor, giving her a decisive win, according to an AP poll of voters.

In New Jersey, Democrat Mikie Sherrill won about two-thirds of voters who called the “economy” the main issue facing the state, the poll showed. She defeated Trump-backed Republican candidate Jack Ciattarelli. More than half of New York City voters said the cost of living is the most important issue facing the city. Democratic Mayor-elect Zahran Mamdani won about two-thirds of this group.

The White House sought to downplay the previous Democratic administration’s efforts as a gift to the drug industry because the proposal did not include sufficient price concessions from drug makers.

Instead, Trump struck a “belt and suspenders” deal that ensured Americans would not unfairly fund drug industry innovation, a senior administration official claimed, who briefed reporters ahead of Trump’s Oval Office announcement on Thursday.

Another senior administration official said drug coverage will expand to include Medicare patients starting next year. Those who qualify will pay $50 for the medication.

Prices will also be gradually reduced for people without coverage through the administration’s TrumpRx program, which will allow people to buy drugs directly from manufacturers. Starting in January.

Lower prices will also be provided for state and federally funded Medicaid programs, officials said. Initial doses of the new versions of obesity treatments would cost $149 per month if approved.

The officials briefed reporters on the condition of anonymity under ground rules set by the White House.

Doctors praise the low prices

Dr. Leslie Golden says she has nearly 600 patients taking one of these treatments, and 75% or more of them struggle to afford it. Even with coverage, some face a $150 copayment for a refill.

“Every visit we’re asked, ‘How long can we keep doing this? What’s the plan if I can’t keep going?'” said Golden, an obesity medicine specialist in Watertown, Wisconsin. “Some of them are working extra jobs or delaying retirement so they can continue to pay for it.”

Both Lilly and Novo have already reduced prices for their drugs. Lilly said earlier this year that it would reduce the cost of initial doses of Zepbound to $349.

The possibility of drug coverage for the 30 million people on Medicare who are obese would be welcome, said Dr. Fatima Cody-Stanford, an obesity expert at Massachusetts General Hospital. But until the details are revealed, she remains skeptical.

“I have to see it to believe it,” she said. “I need to see something more specific to Medicare beneficiaries. I need to see something tangible and sustainable.”

Dr. Angela Fitch, who also treats patients with obesity, said she hopes the agreement between the White House and drug makers is the first step in making treatments more affordable.

“We need a champion in obesity care today,” said Fitch, founder and chief medical officer of Knownwell, a weight loss and medical care company. “The community has faced relentless barriers to accessing GLP-1 medications, the price of which has ultimately declined, despite our data supporting their effectiveness.”