STAT+: The loophole in Trump’s obesity drug deal with Eli Lilly and Novo Nordisk
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- The Trump administration struck a November deal with Eli Lilly and Novo Nordisk pegging GLP-1 prices at $245 per month in Medicare and Medicaid, framed as lower prices for higher sales volume.
- The $245 price was supposed to apply to all GLP-1s, including obesity drugs that Medicare had not previously covered at all.
- The deal carried an undisclosed contingency: the headline $245 price depends on private Medicare insurers agreeing to cover the drugs for all uses with a $50 copay — a condition the administration never publicly disclosed.
- Eli Lilly and Novo Nordisk recently confirmed the hidden condition to STAT, revealing that the bargain's price floor rests on private insurer cooperation.
- The practical outcome, per STAT: the drugmakers secured higher volume without the promised lower prices in some cases, undercutting the deal's stated premise.
Why it matters: Medicare beneficiaries and taxpayers were sold a $245 GLP-1 price point, but that figure only holds if private Medicare insurers voluntarily agree to cover obesity uses at a $50 copay — shifting real negotiating leverage from the administration to private insurers and meaning obesity patients may never see the headline price.
