Tuesday, 02 January 2024 12:17 GMT

Trump Administration Unveils Deals to Lower Obesity Drug Costs


(MENAFN) The Trump administration has declared two new agreements aimed at broadening Medicare benefits and reducing the monthly expense of widely used obesity medications to as little as $149.

According to a Thursday statement, the administration has reached these agreements with pharmaceutical firms Eli Lilly and Novo Nordisk as part of ongoing initiatives to curb prescription drug costs.

The arrangements require the companies to match Medicaid drug prices with the lowest rates in comparable nations, establish fair initial list prices, and supply discounted primary care medications directly to consumers.

In exchange, the pharmaceutical firms will receive tariff exemptions on imported medicines and much quicker regulatory clearance for selected drugs.

Consumer prices under these deals will differ based on insurance coverage and purchasing method. Currently, list prices for the medications range from $1,000 to $1,350 before applying any discounts.

For injectable GLP-1 drugs bought directly from the manufacturers, consumers will initially pay approximately $350 per month, with costs projected to fall to around $250 within two years.

FDA-approved oral versions will start at $149 for the lowest dose, officials noted.

These pricing measures will be implemented with the launch of TrumpRx, the administration’s direct-to-consumer platform, in early 2026.

However, medication costs will be visible to consumers before the end of this year, according to Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz.

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