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An analysis of U.S. health claims reveals that while GLP-1 drugs like Wegovy may aid weight loss, they significantly increase medical costs—rising to $18,507 annually—without reducing obesity-related health events, raising concerns for insurers and employers.
An analysis of U.S. health insurance claims shared with Reuters indicates that while medications like Wegovy may help reduce weight, they do not lower medical expenses.
After two years of treatment with Novo Nordisk’s Wegovy or other GLP-1 drugs, the average annual cost of care for patients with obesity rose to $18,507- a 46% increase from the prior average of $12,695. This data, provided by pharmacy benefits manager Prime Therapeutics, highlights the financial implications of obesity treatment.
In a control group of patients not taking GLP-1 drugs, costs increased by 14% over the same period. For those on GLP-1 medications, the rise in expenses was mainly due to higher prescription drug costs, though medical costs also grew. The analysis found no decrease in obesity-related medical events - such as heart attacks, strokes, or type 2 diabetes diagnoses -compared to the control group.
Novo Nordisk and Eli Lilly, makers of the GLP-1 weight-loss drug Zepbound, have earned billions since their U.S. launches. While they claim that their medications could reduce healthcare costs linked to obesity, many U.S. employers and officials hesitate to cover these effective but costly treatments due to high upfront expenses and uncertain future savings.
"The budget hit here is frightening for a lot of governments and private entities," said Ben Ippolito, an economist at the American Enterprise Institute. He noted that the potential demand for these drugs is immense. Analysts predict the weight-loss drug market could reach $150 billion annually in the next decade.
Novo Nordisk emphasized that treating obesity is associated with improved medical outcomes, even though officials have not yet determined how to quantify these savings. Eli Lilly did not respond to a request for comment.
A study by Prime Therapeutics found that only one-in-four patients prescribed GLP-1 drugs like Wegovy or Ozempic for weight loss continued taking them after two years, leading to concerns about the cost-effectiveness of these medications.
With an estimated additional expense of $11,200 per patient in the first two years, Prime cautioned that without sustained use and positive health outcomes, insurers may need to reconsider their coverage of these weight-loss drugs.
Video from the USGS (United States Geological Survey) showed on Friday (19 September) the Kilauea volcano in Hawaii erupting and spewing lava.
At least 69 people have died and almost 150 injured following a powerful 6.9-magnitude earthquake off the coast of Cebu City in the central Visayas region of the Philippines, officials said, making it one of the country’s deadliest disasters this year.
Authorities in California have identified the dismembered body discovered in a Tesla registered to singer D4vd as 15-year-old Celeste Rivas Hernandez, who had been missing from Lake Elsinore since April 2024.
A tsunami threat was issued in Chile after a magnitude 7.8 earthquake struck the Drake Passage on Friday. The epicenter was located 135 miles south of Puerto Williams on the north coast of Navarino Island.
A shooting in Nice, southeastern France, left two people dead and five injured on Friday, authorities said.
Indian police have arrested the owner of Sresan Pharmaceutical Manufacturer, the cough syrup company linked to the deaths of at least 19 children in the central state of Madhya Pradesh, a senior police officer told Reuters on Thursday.
More than 200 health facilities in war-hit eastern Congo have run out of medicines due to widespread looting and supply chain disruptions during fighting this year, the International Committee of the Red Cross (ICRC) said on Wednesday.
Indian authorities have launched a manslaughter investigation after at least 14 children died from a toxic cough syrup in Madhya Pradesh, raising fresh concerns over the country’s pharmaceutical safety.
U.S. President Donald Trump’s decision to impose 100% tariffs on branded and patented pharmaceuticals manufactured abroad poses a serious threat to Germany’s pharmaceutical sector, according to the Berlin-based industry group Verband Forschender Arzneimittelhersteller (vfa).
A flock of Canadian ostriches set to be culled, after two dead birds tested positive for avian flu, has been granted a last-minute stay of execution from Canada's highest court - for now.
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