President Donald Trump announced a new agreement on Thursday aimed at reducing the costs of popular obesity medications, including Zepbound and Wegovy, produced by Eli Lilly and Novo Nordisk. The deal is designed to expand coverage for these drugs under Medicare and Medicaid, making them more accessible to millions of Americans.

The agreement will allow Medicare patients to access these treatments starting next year. Currently, many patients face high costs, with some paying around $500 per month for higher doses. The new pricing structure will introduce lower costs for uninsured patients as well. If approved, new oral versions of the drugs will be priced at $149 per month for initial doses.

During the announcement in the Oval Office, Trump stated, "(It) will save lives, improve the health of millions and millions of Americans," referring to GLP-1 medications as a "fat drug." This initiative is part of the administration's broader effort to address rising drug prices and cost-of-living concerns among voters.

The obesity drugs work by influencing hormones that regulate appetite and feelings of fullness. Clinical trials have shown that these medications can help patients lose between 15% and 22% of their body weight. However, the high costs have made them inaccessible for many, particularly those without insurance. Currently, Medicare covers these drugs for conditions like type 2 diabetes but not for weight loss alone.

The announcement comes as the Trump administration seeks to demonstrate its responsiveness to public concerns about rising costs in various sectors, including healthcare. Health and Human Services Secretary Robert F. Kennedy, Jr. emphasized the importance of making these drugs available to a broader segment of the population, stating, "Obesity is a disease of poverty. And overwhelmingly these drugs have only been available for people who have wealth."

The deal also includes provisions for lower prices for state and federally funded Medicaid programs. Starting in January, the administration's TrumpRx program will allow individuals to purchase drugs directly from manufacturers at reduced prices. Those who qualify for Medicare will pay a $50 copay for the medications.

Doctors have welcomed the price reductions. Dr. Leslie Golden, an obesity medicine specialist, noted that many of her patients struggle to afford their treatments. "Every visit it’s, ‘How long can we continue to do this? What’s the plan if I can’t continue?'" she said, highlighting the financial strain on patients.

Both Eli Lilly and Novo Nordisk have already made efforts to lower their drug prices. Earlier this year, Lilly announced it would reduce the cost of initial doses of Zepbound to $349. Dr. Angela Fitch, another obesity specialist, expressed hope that this agreement could be a significant step toward making these treatments more affordable. "We need a hero in obesity care today," she said, emphasizing the barriers patients face in accessing GLP-1 medications due to high costs.

As the administration moves forward with this initiative, it remains to be seen how much of a difference these price cuts will make for consumers, especially as the landscape of drug pricing continues to evolve.