A recent analysis suggests that despite their effectiveness in weight reduction, GLP-1 drugs like Wegovy and Ozempic do not lower healthcare costs within two years, Reuters reports.
According to US health insurance claims data provided to Reuters by pharmacy benefits manager Prime Therapeutics, average medical expenses for patients taking GLP-1 medications for obesity rose by 46% over two years, compared to a 14% increase in a similar group not using these drugs.
The study found that patients who started using GLP-1 medications in 2021 faced an annual healthcare cost increase from $12,695 to $18,507. Prescription expenses, driven largely by the high cost of GLP-1 drugs, were the main contributor to this rise. Additionally, researchers observed no decrease in obesity-related health conditions, such as diabetes, heart disease, and hypertension, among the medication group compared to the control group.
Only 25% of the patients remained on the medications after two years. This trend may reflect adherence challenges, as suggested by Patrick Gleason of Prime Therapeutics, who projected an additional $11,200 in yearly costs per patient due to the medications’ price and lack of reduction in related healthcare costs. He also noted that many insurers and employers may hesitate to cover GLP-1 drugs due to high upfront expenses and uncertain long-term savings.
GLP-1 drugs, developed by companies like Novo Nordisk and Eli Lilly, have gained popularity among a small fraction of the estimated 100 million Americans with obesity. Both companies argue that these treatments could improve public health by mitigating obesity-related conditions. However, experts like Ben Ippolito of the American Enterprise Institute point to the high demand and financial strain the drugs place on healthcare systems. Analysts estimate the market for these drugs could reach $150 billion annually within the next decade.
David Lassen, vice president of pharmacy clinical services at Prime, mentioned the possibility of reassessing the financial value of covering GLP-1 drugs if data continue to indicate limited health cost benefits.
