GLP-1 Drugs For Weight Loss Aren’t Cost-Saving Yet

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GLP-1 Drugs For Weight Loss Aren’t Cost-Saving Yet
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Intuitively, it would seem that GLP-1 use for obesity would reduce overall medical costs despite the increase in drug spending. But thus far, the data don’t show this.

with obesity. It is to be used in conjunction with an appropriate dietary regimen and increased physical activity. For those who are overweight or obese, medications known as glucagon-like peptide-1 agonists, or GLP-1 s, have become very popular as weight loss treatments. Taken in accordance with instructions on the label and an appropriate diet and exercise regimen, GLP-1 s are effective at lowering a person’s weight.

Perhaps the time frame being considered is the issue. Maybe in the long run, say, after ten years, GLP-1s for weight loss are cost-effective or even cost-saving. Other than modeled projections, since there hasn’t been a decade long study examining GLP-1s for obesity, we just don’t know yet. But suppose they do prove to be cost-effective or cost-saving in long-term studies. Insurers in the U.S. would still face the problem of churn, or enrollee turn-over, as they migrate from one health plan to another. GLP-1s cost payers money upfront, but with member churn it’s unlikely a typical insurer will have the same enrollee ten years from now to realize potential cost-effectiveness or savings. Anotes that one in five members disenrolled from a commercial insurer each year.

If Medicare were to cover weight loss drugs—it currently doesn’t, with the exception of Wegovy for a cardiovascular indication—the program wouldn’t be immune to cost issues. Therefore, while the Biden administration’sof Medicare Part D coverage of weight loss medications would allow for access to such therapies to approximately 3.4 million Medicare beneficiaries who have obesity, for budgetary reasons it’s unclear if the incoming Trump administration will go along with it.

Further compounding the cost burden issues for insurers is the fact that patients are often non-persistent. In the Prime Therapeutic study cited above, only one in four patients were still on Wegovy or Ozempic two years later. And in a Blue Cross Blue Shield Association white paper posted last summer, the number was even lower,who are persistent long enough to achieve clinically meaningful weight loss.

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