GLP-1 is accelerating the growth of traditional drug spending

Diving Briefs:

• New studies have shown that demand for GLP-1 drugs grows faster than spending on special drugs. This can lead to more stress in employers and health plans that already contain high spending on prescription drugs.
• According to a report published on Tuesday by EVERNERTH, a national insurance company, CIGNA’s health service department, it is the first time in 2023 for the first time in 2023, the traditional drug that surpasses the growth of special drugs used to treat complex and chronic conditions (simple medicines used to treat general health problems).
• EVERNERTH has not been expected to reverse the trend for the next few years with the continuous demand for GLP-1 for weight loss and the approval of more conditions for more conditions.

Dive Insights:

In the case of glucagon -like peptide -1 receptor agent, the short GLP -1 is a type of drug that acts by imitating hormones that control blood sugar levels. The GLP-1 has been approved for diabetes for 20 years, but recent drug repetitions have shown strong efficacy to promote weight loss and help relevant conditions such as heart disease and sleep apnea.

In the early 2020s, demand for drugs surged in the early 2020s despite the high price tag, which is not reaching many Americans. The number of people who can get the help of GLP-1 is huge. About 70%of American adults are obese or overweight.According to government data.

The application of GLP-1 for weight loss is not universal, but has increased steadily. According to EVERNORTH, 59%of health plans and 22%of employers deal with GLP-1 for weight loss.

However, despite the potential of drugs that can improve the obesity and other chronic conditions of the drug, the cost of GLP-1 is accelerating in the US’s prescription drug spending, which is already growing rapidly thanks to chronic diseases, continuous price inflation and other factors.

According to the Evernorth report, traditional drug costs have been stable for many years, but have increased significantly since Semaglutide, the type of GLP-1 drug, the Evernorth report said.

GLP-1 can be expensive: the price of GLP-1 Wegovy and Oz Big It gets about $ 1,000 for a month.

Last year, drugs aimed at weight management showed that EvernortH’s research based on more than 27 million consumers’ data, which has a national commercial insurance coverage, accounted for almost 46.8%of drug spending aimed at weight management.

Among them, GLP-1 for weight loss said that the “superior driver” said the report said that the net trend increased by more than 200% in 2023.

However, employers and payers are worried about investment revenue as adoption increases and the scope of guarantee expands.

According to EVERNORTH, more than half of patients using GLP-1 for weight loss stop early treatment early.

The patient can lose 15% ~ 25% Body while being in the drug. But in general, those who stop taking GLP-1 Restore two -thirds of your weight Research showed that they were within a year.

Companies like Evernorth are trying to use the tension between GLP-1 cost growth and consumer demand for drugs by creating products aimed at long-term behavioral changes.

The pitch is that the GLP-1 prescription is paired with the management program to help the insurance company and the employer help the patient spill the pound, and keep the weight of the drug even after the drug is stopped, so that the enormous investment in GLP-1 does not fall to the zero.

Health Service subsidiary, CIGNA, Elevance and Unitedth In the last two years, we have started weight management programs for our customers.

Many small chronic state management companies, including Omada, Lark Health and DarioHealth, provide a behavioral change platform with GLP-1.

Despite the continuous cost problem, the utilization of GLP-1 is expected to continue to increase as low alternatives enter the market. It is expected that more suppliers prescribe and plan drugs will be comfortable to expand their coverage policies.

Even Medicare, which is banned by how to reduce weight, is trying to overturn the limit. However, it is not clear whether the Trump administration will support the proposed change.