The Trump administration announced deals on Thursday with pharmaceutical giants Novo Nordisk and Eli Lilly that would lower the cost of GLP-1 drugs for many Americans, including those on Medicare.

The administration negotiated how much both the government and consumers would pay for the drugs, which are used to treat obesity and diabetes as well as other cardiometabolic conditions. 

As soon as the public-private partnership TrumpRx launches, patients using the service will pay roughly $350 for a month’s supply of the injectable drugs, according to senior administration officials.

That price is set to scale down to $250 over the next two years for people paying completely out-of-pocket with no insurance. 

Those using the daily pill versions of the drug, which yet to be approved by the U.S. Food and Drug Administration, will have prices beginning at $150 for the starting doses, the senior administration officials said.

Both companies are expected to come out with new GLP-1 pills that are set to be available starting sometime next year pending FDA approval. 

The reported savings on what the government will be paying for the medications will help broaden the type of people eligible for the drug.

Those with severe obesity will soon be able to access the drug under Medicare. Medicare patients will have a $50 co-pay for the drugs and could see the new pricing as soon as mid-2026. Medicaid pricing and timing will be dependent by state as they opt in.  

Currently, federal insurance programs cover Novo Nordisk’s Wegovy — one of the GLP-1s for people who are overweight and have heart disease — but there is no medication for obesity alone covered by Medicare.  

Under this announcement, people who are severely obese — considered to be a body mass index over 35 — will also be covered for the medications for a $50 co-pay, but it doesn’t include broad coverage for all people who are overweight or obese like many private insurance plans cover. 

GLP-1 drugs currently cost roughly $500 out-of-pocket for those without insurance. 

The deal is another of the Trump’s administration’s “most favored nations” agreements with pharmaceutical companies, a deal that comes after the president signed an executive order in May ordering his administration to pursue the deals to reduce the price of drugs for Americans. 

“Today marks a pivotal moment in U.S. health care policy and a defining milestone for Lilly, made possible through collaboration with the Trump administration,” David A. Ricks, Eli Lilly’s chair and CEO, said in a statement. “As we expand access to obesity treatments for more Americans and advance one of the most innovative obesity pipelines, we remain focused on improving outcomes, strengthening the U.S. health care system, and contributing to the health of our nation for generations to come.”  

In a separate statement, Mike Doustdar, president and CEO of Novo Nordisk, said the deal will expand patient access and affordability. 

“Unlike any other medicine in the GLP-1 class today, semaglutide is the only molecule whose respective FDA indications span obesity, type 2 diabetes, liver disease, kidney disease and cardiovascular risk,” the statement read. “Novo Nordisk has always worked to secure affordable access to our innovative medicines, and today’s announcement will bring semaglutide medicines to more American patients at a lower cost, Importantly, this also expands obesity medication access in Medicare, which will allow people living with obesity to access authentic Wegovy.”