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Insights on GLP-1s: Costs and coverage

Balancing the risks and the benefits of GLP-1 drugs

Published: October 17, 2024 | 3-minute read

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GLP-1s are more effective than other weight loss medications

Researchers and clinicians have been warning about the tremendous costs from obesity for many years. Yet, the upward trend in prevalence and spending for obesity seemed unstoppable. In 2010, approximately 36% of U.S. adults were obese.1 By 2020, the proportion who were obese had risen to 42%.2

Today it is estimated that obesity is generating $426 billion in annual costs to U.S. businesses and employees. These include direct medical costs and costs for disability, workers comp, and lost productivity.3  

But, seemingly overnight, GLP-1s have changed how we think about treating and managing obesity. Some of the brand names include Ozempic®, Wegovy®, Mounjaro® and ZepBound®. Suddenly there's huge awareness, whether on social media, talking to neighbors or watching TV. The odds are good that you know someone who has taken a GLP-1 or other weight loss medication. 

The main reason for all the excitement is simple: These drugs work. Patients routinely achieve double-digit percentage reductions in body fat when taking them.4  

Not only are GLP-1 and similar drugs highly effective at their original purpose of controlling blood sugar for diabetes, they are also much more effective than any previous weight loss medications.

This graph demonstrates double-digit reductions in body fat for Wegovy (15%) and ZepBound (21%).

How GLP-1 drug costs and coverage are shaping the market

The Optum Rx Strategic Insights area recently completed a deep dive into how GLP-1 drugs are affecting the prescription drug market. They found a complex web of interrelated factors that will influence the shape of this drug class going forward. 

In short, they found that while consumers, employers and physicians are optimistic about the effectiveness of GLP-1s to treat obesity, cost and coverage are significant hurdles for consumer access. Employers are craving leadership to help make coverage decisions, while physicians want help navigating barriers for patient access. 

Consumers and physicians are leading the way when it comes to spreading awareness and acceptance of these new drugs. Here are a few of the key insights:

  • One in ten U.S. consumers say they are most interested in trying prescription medications for weight loss, with 7% currently taking Ozempic or a similar GLP-1 medication.  
  • 77% of physicians surveyed said they had prescribed a GLP-1 in the past year, while 93% said they expect to prescribe more GLP-1s for weight loss going forward.
77% of physicians have prescribed a GLP-1 drug while 93% expect to use GLP-1s for weight loss.
  • Despite their growing popularity, GLP-1 drug use is hindered by potential side effects, extreme cost, and limited long-term data. Notably, side effects and cost are top reasons for those discontinuing treatment. 
  • Employers are largely accepting the use of GLP-1s for diabetes and weight loss. And despite cost concerns, most employers did not experience catastrophic increases in drug spend related to their usage for weight loss (on average +8%). 
  • Some employers feel that they did not receive enough warning or planning to prepare for the surge of GLP-1 use. And yet, a significant number of employers have not discussed GLP-1 coverage options with their PBM. 
  • Whether they felt prepared or not, most employers already find that offering coverage for GLP-1 drugs is important for employee retention. 

For the long term, physicians are excited to finally have an effective tool to offer their patients struggling with obesity. However, many of them have serious concerns about the long-term use of these drugs. 

GLP-1s have done a great service in bringing the conversation around obesity back to lifestyle and nutrition. The clinical consensus is clear: GLP-1 drugs are not magic. While they can definitely reduce obesity, lifestyle changes must be in place to maintain the improvements. 

Education and support for members using GLP-1 drugs

The Optum Rx Weight Engage solution is a suite of behavior modification programs that provide education and support for the members who use GLP-1 type drugs. This support ranges from understanding the drug to checking in on them and educating them about the effects of the drug so that they can have better persistency and can realize the long-term benefits.

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Sources

1. National Center for Health Statistics (CDC). In 2009–2010, over 78 million U.S. adults and about 12.5 million U.S. children and adolescents were obese. Published January 2012. Accessed October 9, 2024.  
2. Trust for America’s Health. State of Obesity 2022: Better Policies for a Healthier America. Published September 27, 2022. Accessed October 9, 2024. 
3. Global Data. Assessing the Economic Impact of Obesity and Overweight on Employers. Published February 2024. Accessed October 9, 2024.  
4. Nature. The ‘breakthrough’ obesity drugs that have stunned researchers. Updated September 20, 2023. Accessed October 10, 2024.