The escalating prices of blockbuster drugs designed for weight loss are attracting growing scrutiny, especially as more Americans become eligible for these treatments. The availability of these drugs not only for heart risks but potentially for other conditions like sleep apnea has sparked urgent discussions on how to finance these revolutionary treatments without breaking the bank.
Tricia Neuman, a senior vice president at the health policy research nonprofit KFF, noted, “It’s almost hard to imagine what it could mean for total spending on prescription drugs.”
Recent comments from the head of Congress’ budget scorekeeper underscored the staggering costs of these drugs even after discounts and rebates. He suggested that prices would need to drop significantly to avoid adding to the national deficit. This concern was echoed by Senator Bernie Sanders, who launched an investigation into the “unjustifiably high prices” of drugs like Novo Nordisk’s Ozempic and Wegovy.
The list prices of these drugs are eye-watering: $969 a month for Ozempic and $1,349 a month for Wegovy. While Medicare doesn’t typically cover weight loss drugs, its recent decision to cover Wegovy for heart attack and stroke prevention has suddenly made millions of enrollees eligible.
GLP-1 agonists, the class of drugs to which these belong, hold promise in preventing serious conditions, particularly among diabetic patients. However, there’s debate over their cost-effectiveness, especially considering that many patients discontinue use due to side effects.
Sanders highlighted the stark contrast between U.S. list prices and those in other countries like Germany and the Netherlands. While Novo Nordisk argues that the complexities of drug development and healthcare systems are often overlooked in public debates, critics point out that significant portions of sales go toward rebates and discounts.
The future trajectory of drug prices remains uncertain, although increased competition or patent expirations could lead to reductions. However, for now, demand for these drugs remains high, making it unlikely for manufacturers to lower prices anytime soon.
