What's Happening?
The Trump administration is reportedly close to finalizing a deal with pharmaceutical companies Eli Lilly and Novo Nordisk to reduce the prices of their weight loss drugs, Zepbound and Wegovy, to as low
as $149 per month. This agreement would involve limited Medicare coverage for these drugs, which are currently priced above $1,000 per month. The deal is part of President Trump's broader initiative to lower prescription drug prices, aligning them more closely with those in other developed nations. The administration has previously reached similar agreements with other pharmaceutical companies to reduce drug costs under Medicaid.
Why It's Important?
This potential agreement could significantly impact the affordability and accessibility of weight loss medications for Medicare beneficiaries. By lowering drug prices, the administration aims to alleviate the financial burden on patients and potentially increase the use of these medications for weight management. The deal also reflects ongoing efforts to reform drug pricing in the U.S., which could set a precedent for future negotiations and policies. Pharmaceutical companies may benefit from increased sales volume, while patients could gain access to necessary medications at a reduced cost.
What's Next?
If the deal is finalized, it could be announced as early as this week. The specifics of the agreement, including which Medicare patients would qualify for coverage and whether the reduced price would apply to private insurance, remain unclear. The administration is expected to unveil new drug prices by the end of November, as part of ongoing Medicare drug price negotiations under the Inflation Reduction Act.
