President Trump’s plan to slash prescription drug prices could cost the federal government an additional $35 billion over eight years, according to Congressional Budget Office estimates.
Key Takeaways
- Trump’s TrumpRx program cuts prices for diabetes and obesity drugs like Ozempic and Wegovy
- Medicare and Medicaid will now cover obesity medications for adults
- CBO projects $35 billion net cost to government from 2026-2034
- Savings from better health outcomes won’t offset increased drug spending
Trump’s Drug Price Initiative
On November 6, 2025, President Trump announced sweeping reductions in prescription drug prices, directing manufacturers including Eli Lilly and Novo Nordisk to lower costs. The initiative targets medications with the highest annual expenditures to help Americans struggling with diabetes, heart disease, obesity and other conditions.
Substantial Price Cuts for Popular Drugs
The TrumpRx program brings dramatic price reductions for key medications:
- Ozempic and Wegovy: Drop to $350 monthly from $1,000 and $1,350 respectively
- Zepbound and Orforglipron: Reduced to $346 average from $1,086 per month
If FDA approves the Wegovy pill or similar GLP-1 drugs, they’ll be available for $150 monthly through TrumpRx. The program connects patients directly with manufacturers, increasing transparency and eliminating third-party markups.
$35 Billion Fiscal Impact
The Congressional Budget Office analysis reveals the financial implications of covering anti-obesity medications under Medicare. Their October 22, 2024 report projects:
“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.”
Currently, Medicare doesn’t cover weight loss drugs including GLP-1 medications like Wegovy and Saxenda. While healthcare savings will occur, the CBO confirms they won’t be sufficient to offset the increased drug expenditure.
