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The Trump administration has made two new deals to lower the price of obesity drugs for some people. The agreements with drugmakers Eli Lilly and Novo Nordisk were announced at the White House yesterday. NPR pharmaceuticals correspondent Sydney Lupkin has more.
SYDNEY LUPKIN, BYLINE: President Trump has been pushing to lower drug prices for Americans and get them on par with what other developed countries pay. The latest deals involve Type 2 diabetes and obesity drugs - Ozempic, Mounjaro, Wegovy and Zepbound. Specifically, they would expand coverage for some but not all people with obesity. By lowering the price the government pays for these drugs, Medicare beneficiaries would be able to get them for a monthly co-pay of $50. And the lower prices mean Medicaid, which hasn't always covered obesity drugs, might start offering them. Dr. Mehmet Oz, who heads the Centers for Medicare and Medicaid, was in the Oval Office for the announcement.
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MEHMET OZ: By the time the ink dries on these contracts that were signed earlier today, within two years, based on our health improvements, we will be budget-neutral. These drugs will not cost us money. The American taxpayers will be getting their money back.
LUPKIN: The idea is that improved access to the drugs would lower other obesity-related health costs. The agreements also lower prices for consumers who buy obesity drugs directly from the drug companies without using their insurance. For example, a starting dose of Zepbound is around $350 a month for cash-paying customers. It will go down to $300. Geoffrey Joyce, a health economist and director of health policy at the USC Schaeffer Center, says it's a win for the drug companies even though they're taking a hit on prices.
GEOFFREY JOYCE: I think the manufacturers were open to this partly for political reasons, but also it was just going to expand their patient population dramatically.
LUPKIN: He says that means more revenue for the drug companies. The American Medical Association applauded the announcement, calling it a transformative step in the battle against chronic disease and obesity. The deals also include a commitment to launch any new drug in the U.S. at the same price as in other developed countries.
Sydney Lupkin, NPR News. Transcript provided by NPR, Copyright NPR.
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