Medicare to cover obesity drugs for certain groups next year
Medicare will cover GLP-1 weight loss drugs for specific patient groups, beginning in mid-2026, under a deal the Trump administration struck with drugmakers Eli Lilly and Novo Nordisk.
The deal also includes lower prices for GLP-1 drugs for Americans who use cash to buy them through a new government website. That website is expected to launch next year and will allow people to buy drugs directly from companies.
Politico reported that about 10% of Medicare beneficiaries will be eligible for expanded access to GLP-1 medications.
Medicare doesn’t cover GLP-1 drugs solely for fighting obesity. It allows coverage only for people who have obesity paired with health issues such as diabetes or cardiovascular issues. The new obesity drug coverage will be enabled through a pilot program designed to cover a majority of beneficiaries under Medicare Part D.
Under the agreements, the monthly out-of-pocket cost of popular injections and pills that are currently under development could range from $50 to $350 starting next year, depending on the dosage and the patient’s insurance coverage.
3 eligible groups for GLP-1 coverage
Patients eligible for GLP-1 coverage will fall into three groups.
- Those who are overweight — with a body mass index greater than 27 — with prediabetes or established cardiovascular disease.
- Those with obesity – with a BMI greater than 30 – and uncontrolled hypertension, kidney disease or heart failure.
- Patients with severe obesity, or anyone with a BMI greater than 35.
The specific prices Americans will pay, and when those price changes will kick in, will vary based on where people get their prescriptions — Medicare, Medicaid or through a direct-to-consumer program.
Eli Lilly CEO David Ricks said the administration plans to launch a voluntary pilot program for Medicare in the spring. While a few Medicare Part D plans may not participate, the drugmaker executive said he expects “almost all” will do so.
Then, starting in 2027, that program will become mandatory, according to Ricks.
For Medicare and Medicaid, drugs like Ozempic, Wegovy, Mounjaro and Zepbound will cost the insurance programs $245 a month. Medicare beneficiaries will only be responsible for a $50 copay, the White House said, and Americans on Medicaid generally pay little to no cost for prescription drugs.
For pill versions of the drugs, which are new versions of the medication that first need to face FDA approval, the price could be as low as $149 to Medicare and Medicaid.
Novo Nordisk asked the FDA to approve an oral version of Wegovy in May, and Eli Lilly plans to submit an application for its weight-loss pill candidate to the agency by the end of the year.
Patients also will be able to get GLP-1s on direct-to-consumer platforms at steeper discounts than they already receive through drugmakers’ existing sites.
On TrumpRx – the government’s direct-to-consumer platform for buying prescription drugs with cash expected to launch next year – the average monthly cost for Wegovy, Zepbound and other injectable GLP-1s will start at $350 and drop to $250 within the next two years, senior administration officials told NBC News.
© Entire contents copyright 2025 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.



KKR, Brookfield Asset Management report third-quarter earnings
Succession planning: Begin with the end in mind
Advisor News
- Why advisors should be talking about life settlements
- Millennials are ready to bring their advisor to the family table
- How healthcare inflation can eat up a client’s retirement income
- Global economy ‘resilient’ in the wake of massive disruption
- Cryptocurrency legislation takes one step forward with bipartisan support
More Advisor NewsAnnuity News
- NAIC regulators continue pushing for annuity illustration updates
- Wink: Flat first-quarter annuity sales fall just short of $100B
- 26North Re Agrees to Acquire 100% of Independent Insurance Group
- Matthew Michelini named Athene president, with an eye on annuity growth
- Lincoln Financial Announces Executive Leadership Transitions
More Annuity NewsLife Insurance News
- Prudential announces more layoffs as insurer continues to restructure
- Pradip Patiath Joins Securian Financial Board of Directors
- Over $107 million in life insurance benefits located for Tennesseans in 2025
- Study Data from National Institutes of Health Provide New Insights into Law and the Biosciences (Taking actuarial fairness seriously: what is required for the ethical use of genetics in insurance?): Legal Issues – Law and the Biosciences
- 26North Re Agrees to Acquire 100% of Independent Insurance Group
More Life Insurance NewsProperty and Casualty News
- Arch Insurance North America Deepens Commitment to Wholesale Partners with Leadership Appointments
- Pipes bond payment in Clay City coffers
- Digital Becomes the New Front Door for Auto Insurance Shopping, as Nearly Half of New Auto Policies Are Bought Online, JD Power Finds
- Radian to Host Investor Day Today
- Anticipating the next disaster
More Property and Casualty News