The news: Eli Lilly and Novo Nordisk are closing in on deals with the Trump administration to exchange deep discounts on their weight loss drugs for coverage under Medicare, per Endpoints News.

The reported deals include obesity drugs priced at $149 per month for the lowest doses. Lilly’s Zepbound and Novo’s Wegovy wholesale prices are around $1,000 per month, although both drugmakers offer the medications directly to consumers at $499 per month.

Why it matters: Medicare does not currently cover the cost of anti-obesity medications when prescribed for weight loss.

Medicare coverage for the drugs would total about $35 billion from 2026 to 2034, per a Congressional Budget Office (CBO) analysis in October 2024. It was based on an average annual drug cost of $5,600 in 2026, decreasing to $4,300 in 2034. CBO analyzed the costs after the Biden administration proposed coverage for obesity drugs for Medicare and Medicaid recipients in November 2024.

In April, the Trump administration said it wouldn’t finalize the Biden rule and blocked anti-obesity drug coverage. But President Trump recently hinted at the deals in October when he noted that the price for brand-name GLP-1 drugs could soon drop to $150 per month.

About 12.5 million of US adults on Medicare would qualify for anti-obesity medications in 2026, per CBO. About 66 million people are insured by Medicare.

• Medicare already covers Novo’s Ozempic and Wegovy to treat diabetes and cardiovascular risk, and Zepbound for sleep apnea.
• Only 22% of commercial health insurers cover GLP-1s for obesity, per a June 2025 Pharmaceutical Strategies Group report.

What it means for consumers: It's unclear which insurance markets or patients the $149 price tag would apply to. But it could amplify consumer pressure on the drugmakers and commercial insurers to lower costs and expand coverage more broadly.

What it means for marketers: Medicare coverage creates a large and stable new market for drugmakers, but squeezes margins. The move greatly broadens access for existing players like Lilly and Novo, but could cool incentives for new competitors and push back obesity drug innovation.