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Wednesday, Nov 05, 2025

White House Nears Deal with Eli Lilly and Novo Nordisk to Cut Obesity-Drug Prices in Exchange for Medicare Access

White House Nears Deal with Eli Lilly and Novo Nordisk to Cut Obesity-Drug Prices in Exchange for Medicare Access

Administration officials report an agreement that would offer the lowest doses at $149 per month while opening U.S. seniors to broader access under Medicare.

The U.S. government is preparing to announce a landmark arrangement with pharmaceutical giants Eli Lilly and Novo Nordisk to reduce prices on their obesity medications and secure access to coverage under Medicare, according to senior White House sources. The proposed deal would see the leading manufacturers offer the lowest­-dose versions of their weight-loss drugs at about one hundred and forty-nine dollars per month, in return for public-insurance access for those aged sixty-five and older or with disabilities.

The move aligns with Donald Trump’s intensified push on drug-pricing reform, aiming to bring U.S. prescription costs closer to those paid elsewhere. A spokesperson for Novo Nordisk confirmed ongoing constructive discussions tied to the administration’s “most-favoured-nation” pricing initiative; Eli Lilly and the White House had no immediate comment.

Under current regulations, weight-loss drugs in this class are rarely covered for obesity under Medicare, leaving many older Americans to pay privately at retail prices that exceed a thousand dollars per month. With more than forty-per-cent of U.S. adults classified as obese and mounting evidence of associated health-care burdens, access to these treatments has become a policy focal point.

The agreement marks a strategic shift: manufacturers gain broad public-payer reimbursement and potentially stronger market access, while the administration advances its dual goal of lowering consumer costs and reinforcing American competitiveness in pharmaceutical innovation. Some analysts expect the announcement to follow shortly, possibly at a White House event where company executives may be present.

If finalised, the deal could open the door to new competitive pressure for higher doses and other weight-management therapies, as well as signal a broader trend of government-industry pacts in the U.S. life-sciences sector. The details of drug-eligibility criteria, duration of the pricing commitment and responsibilities of the parties remain under negotiation ahead of formal rollout.

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