(MENAFN) The Trump administration announced on Thursday two agreements designed to expand Medicare coverage and significantly reduce the cost of popular obesity medications, reports indicate.

Under the deals with pharmaceutical companies Eli Lilly and Novo Nordisk, Medicaid drug prices will be aligned with the lowest rates among peer nations, initial list prices will be set fairly, and discounted primary care medicines will be made available directly to consumers.

In exchange, the companies will receive tariff relief on imported pharmaceuticals and accelerated regulatory approval for select medicines.

Consumer costs will vary depending on insurance and purchasing methods. Current list prices for the obesity drugs range from $1,000 to $1,350 per month, but under the agreements, injectable GLP-1 drugs purchased directly from manufacturers will initially cost about $350 per month, falling to around $250 within two years. FDA-approved oral versions will start at $149 for the lowest dose.

The new pricing structure will coincide with the launch of TrumpRx, the administration’s direct-to-consumer platform, scheduled for early 2026, though medication costs will be accessible to consumers before the end of this year, according to Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz.

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