The rapidly growing use of GLP-1 drugs like Ozempic and Wegovy has triggered a significant surge in healthcare expenses in the United States. These treatments, primarily utilized for diabetes and obesity management, are estimated to have driven the overall rise in drug spending for healthcare institutions significantly last year.
Among the GLP-1 medications, Novo Nordisk’s semaglutide, marketed as Ozempic for diabetes and Wegovy for weight loss, has witnessed a remarkable surge in costs. In 2023, expenditures on semaglutide doubled to reach an astonishing $38.6 billion, making it the top-selling drug of the year.
Furthermore, the recent approval of Wegovy for preventing cardiovascular complications has opened the door for expanded Medicare coverage. Although Medicare does not typically cover weight-loss medications, the new indication for reducing heart risks could lead to substantial Medicare spending. Researchers conservatively estimate that Medicare could spend $2.8 billion in a single year on Wegovy alone.
These rising healthcare costs associated with GLP-1 drugs pose significant challenges for both the U.S. healthcare system and the federal government. Further monitoring and analysis are essential to fully understand the impact and sustainability of these treatments in the long run.
