Lexology January 7, 2026
The Trump administration has announced a pricing initiative designed to reduce the cost of glucagon-like peptide-1 (GLP-1) drug products for certain Medicare enrollees. This policy represents a significant departure from the administration’s prior position that Medicare and Medicaid would not cover anti-obesity medications, including GLP-1 products. The change is expected to influence market dynamics for both consumers and industry stakeholders, particularly telehealth companies. Telehealth providers and other digital health companies that have relied on lower-priced GLP-1 offerings as a competitive differentiator may face new challenges as Medicare pricing becomes more attractive to patients, especially as new products enter the market, such as a recent US Food and Drug Administration (FDA) approved oral GLP 1 pill.
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