US President Donald Trump’s move to cut pharmaceutical drug prices in America can potentially turn out to be a $35 billion additional cost to the federal government over the years.
On 6 November 2025, President Trump announced that the federal government has decided to reduce the prices for prescription drugs in the US economy, while also directing manufacturers like Eli Lilly and Novo Nordisk to cut their drug costs.
Which drugs will have lower prices?
According to the official announcement, the federal government’s agreement will cut the prices of those drugs with the highest annual expenditures in the United States in efforts to assist Americans who are struggling to pay for medicines for diabetes, heart disease, obesity, and other ailments.
Ozempic and Wegovy drug prices will fall to $350 when purchased through President Trump’s venture “TrumpRx” compared to their $1,000 and $1,350 per month, respectively.
Prices of Zepbound and Orforglipron will be reduced to an average of $346, compared to their regular price of $1,086 per month, when bought through TrumpRx.
The official announcement also highlighted that if the FDA approves the Wegovy pill or certain similar “GLP-1” drugs, then those will also be available for $150 per month through the TrumpRx website.
The federal health insurance programs — Medicare and Medicaid — will cover obesity drugs for adults in the United States, which can potentially lower the cost for American taxpayers.
Donald Trump’s TrumpRx venture aims to sell prescription medicines for the lowest price in America. TrumpRx “connects patients directly with the best prices, increasing transparency and cutting out costly third-party markups,” according to the official website.
$35 billion impact?
According to the data collected from the Congressional Budget Office (CBO), the agency estimates an additional $35 billion between 2026 and 2034 to cover all the anti-obesity medications under its federal health insurance Medicare scheme.
So far, all the weight loss drugs sold in the United States, including those drugs in the glucagon-like peptide-1s (GLP-1s) class like Wegovy and Saxenda, are not covered under the Medicare scheme.
“CBO projects that legislation repealing the prohibition would increase drug spending by $38 billion, with offsetting health savings of $3 billion, over the 2026-2034 period,” according to the CBO estimates.
The agency also said that while there will be healthcare savings in the American economy, those savings will not be enough to pay for the increased spending on the drugs themselves. The report was published on 22 October 2024.