GLP-1 drugs, such as Novo Nordisk’s Wegovy, have become popular for weight loss among US patients struggling with obesity. Despite significant weight-loss benefits, an analysis of US health insurance claims reveals that these medications may drive healthcare costs higher rather than reducing obesity-related expenses.
According to data from Prime Therapeutics, a pharmacy benefits manager, US patients’ average annual medical expenses rose by 46% within two years of starting GLP-1 medications like Wegovy. Initial annual medical costs were around $12,695, climbing to $18,507 per patient. In contrast, a similar group of patients who did not use these drugs experienced a more modest cost increase of 14% over the same period.
Higher prescription drug costs drive spending increase
Prescription costs emerged as the primary driver of these increased healthcare expenses among GLP-1 drug users, although other medical costs also rose. The analysis indicated no reduction in obesity-related medical events, such as heart attacks, strokes, or diagnoses of type 2 diabetes, compared to patients not taking these medications.
Despite the weight-loss benefits of GLP-1 drugs, their substantial cost has made US employers and government officials wary of adding them to healthcare coverage. Many remain unconvinced that these medications will deliver a sufficient return on investment (ROI), particularly given the significant upfront costs and limited long-term data.
Compliance challenges among GLP-1 users
Prime Therapeutics’ data revealed that adherence to GLP-1 medications is low, with only one in four patients continuing the treatment after two years. David Lassen, the pharmacy clinical services vice president, noted that replicating clinical trial health benefits is challenging due to low adherence rates, suggesting that three-year data may be needed to evaluate true cost-effectiveness.
While Novo Nordisk claims its medications could ultimately reduce obesity-related healthcare costs, the analysis by Prime Therapeutics, involving 3,046 commercially insured patients diagnosed with obesity, indicates otherwise. Patrick Gleason, Prime’s assistant vice president for health outcomes, suggests that employers should prepare for an extra $11,200 in expenses per patient within the first two years of GLP-1 treatment.