Trump announces lower prices coming for GLP-1 drugs Zepbound, Wegovy
President Donald Trump announces discounted pricing for Zepbound and Wegovy and expanding Medicare coverage so more people can access the drugs.
Millions of older Americans on Medicare could see higher monthly prices on their prescription drug insurance plans in 2027 after the Trump administration ends a subsidy program that pushed down prices.
Centers for Medicare & Medicaid Services officials said they are ending a Medicare prescription drug plan subsidy implemented by the Biden administration to lower prices due to changes ushered in by the 2022 Inflation Reduction Act.
“The Biden admin gave billions of taxpayer money directly to big insurance companies. This is unacceptable,” said CMS Administrator Mehmet Oz in a social media post announcing the policy change. “We are stabilizing the market so this bailout is no longer needed.”
Oz said monthly premiums on Medicare prescription drug plans, known as Part D, will increase by less than $10 for most enrollees and some will see lower premiums.
Medicare spent billions to lower Part D premiums in 2025, 2026
CMS will release details in September on monthly premiums for Medicare prescription drug plans, as well as privately administered Medicare Advantage plans, the agency said. Consumers can review and change plans during Medicare open enrollment, which runs from Oct. 15 through Dec. 7 for coverage that begins Jan. 1, 2027.
As of February, about 25 million people were in a stand-alone Medicare Part D plan, often paired with traditional government-run Medicare insurance. Another 31 million were in a Medicare Advantage plan − Medicare plans administered by a private insurance company that typically include prescription drug coverage.
A Trump administration official said the Inflation Reduction Act increased costs for prescription drug coverage. The climate and health care law imposed a $2,000 cap in 2025 on what Medicare enrollees paid out of pocket for prescription drugs. That cap increased to $2,100 in 2026.
Under the Biden administration, CMS created a “demonstration project” that steered subsidies to insurance companies to keep premiums lower. The project cost the federal government $9.8 billion in 2025 and 2026. Had it remained in place, one company, UnitedHealth Group, would have received a $1.5 billion, the Trump administration official said.
UnitedHealth Group spokesman Eric Hausman said the insurer is “committed to working with CMS to ensure seniors have access to affordable prescription medicines.”
But with the demonstration project now ended, some Part D recipients “could see a larger premium increase for drug coverage next year than they’ve faced in recent years,” said Juliette Cubanski, vice president and director of the program on Medicare policy for KFF, a health policy nonprofit.
Under the Biden administration, the demonstration project aimed to stabilize Part D premiums and enrollment amid the changes from the Inflation Reduction Act. The average monthly premium for a stand-alone drug plan fell from $43 in 2024 to $36 in 2026, and enrollment increased from 23 million to 25 million, Cubanski said.
“This temporary demonstration appeared to work as intended to stabilize year-over-year premium increases and enrollment,” Cubanski said.
Employers that provide insurance coverage for prescription drugs have cited rising medication prices and increased use as one reason insurance prices are accelerating.
On July 1, Medicare began covering popular GLP-1 weight-loss medications for millions of enrollees under a pilot program. Older adults who get the medications will pay a monthly $50 copay, and Medicare will cover the rest.