GLP-1 Drugs Driving Up Healthcare Costs: Novo Nordisk’s Ozempic and Wegovy Double in Sales and Medicare Coverage

On Wednesday, two reports were released showing a significant increase in spending on GLP-1 drugs like Ozempic and Wegovy. These medications have become increasingly popular in the U.S. healthcare system and are expected to continue to drive up costs in the coming years. According to the American Society of Health-System Pharmacists, GLP-1 treatments were a major contributor to the overall increase in drug spending by healthcare providers such as pharmacies and hospitals last year.

Novo Nordisk’s semaglutide, marketed as Ozempic for diabetes and Wegovy for obesity, doubled to $38.6 billion, making it the top-selling medicine in 2023. This is a clear indication of the popularity of these drugs among patients and healthcare providers alike.

Another report from the health policy research organization KFF examined the impact of the recent approval of Wegovy for preventing cardiovascular complications. While Medicare typically does not cover drugs for weight loss purposes, the approval of Wegovy for reducing heart risks means that the federal payer can now cover the drug. Researchers conservatively estimate that Medicare could spend $2.8 billion in a year on Wegovy alone as a result of this new approval.

Overall, these reports highlight the growing importance of GLP-1 drugs in modern medicine and their potential impact on healthcare costs in both the private and public sectors.