Media Contact
The Trump administration is nearing deals with Eli Lilly and Novo Nordisk to offer some of their obesity drugs for as low as $149 per month. The deals, which could be announced as soon as this week, would also clear the way for Medicare to cover the drugs for certain beneficiaries. The following Cornell University experts are available to discuss the development.
Nick Fabrizio
Teaching professor, Cornell Jeb E. Brooks School of Public Policy
Nick Fabrizio is an associate teaching professor in Cornell’s health policy program and advises prominent health care institutions.
Fabrizio says:
“If the federal government were to provide broad coverage to address obesity nationwide, total spending could exceed $660 billion – roughly equivalent to the current annual Medicare budget. This estimate assumes approximately 44 million Americans with obesity receiving treatment at about $15,000 per person per year. The financial commitment required would place substantial strain on federal resources and taxpayers.
“In light of this demand, the Trump administration has signaled interest in a pricing approach that could reduce the monthly cost of certain lower-dose GLP-1 medications to around $149.00. However, key details remain unsettled. It is unclear whether this pricing would extend to private or public insurance coverage or apply only to individuals paying out of pocket. It is also uncertain how Medicare eligibility criteria would be defined. The coverage framework, implementation logistics, and budget implications are still evolving.”
Sylvia Hristakeva
Assistant Professor
Sylvia Hristakeva, assistant professor of marketing, authored a study that found that within six months of usage, new GLP-1 users reduce their overall grocery spending by 6%.
Hristakeva says:
“In our data, households using GLP-1 medications for weight loss tend to have higher incomes which is not surprising as insurance coverage for weight loss uses is limited. So, we expect that as lower prices would reduce these cost barriers, more people in the middle and lower parts of the income distribution would start treatment. That is, if access expands, the decreases in food spending we saw in our research would show up across a broader slice of the population.
“We follow households before, during, and after they take GLP-1s. Food spending falls while people take the medication then returns to baseline after discontinuation. We also see that lower income households are more likely to discontinue treatment. That pattern points to cost as a real constraint. If the monthly expense falls, people who currently stop because of price may be able to stay on the drug longer. In that case, we would expect the reductions in food spending would persist for a longer period.”
