Trump drug deal with Eli Lilly and Novo Nordisk has loophole allowing higher GLP-1 volumes without price cuts

The Trump administration negotiated a "grand bargain" with drugmakers that promised lower Medicare and Medicaid prices for GLP‑1 drugs in exchange for higher sales volume.

Eli Lilly and Novo Nordisk secured the agreed $245 monthly price for all GLP‑1s, including obesity treatments, but they achieved the volume boost without delivering the promised price reductions in some cases.

The agreement was contingent on private Medicare insurers covering the drugs for all indications with a $50 copay, a condition the administration did not publicly disclose. Both companies have now confirmed this detail to STAT.

Analysts say the arrangement is not functioning as intended, raising concerns about the effectiveness of the policy approach.