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FDA orders new warning on GLP-1 weight loss drugs
All GLP-1 drugs, which include popular brands like Ozempic and Wegovy, will soon carry new labels warning people taking the medications about a possible side effect that could lead to permanent vision loss. Dr. Bradley Katz with University of Utah Health joins LiveNOW's Andy Mac to discuss.
GLP-1 drugs are leading to fewer hospitalizations, better clinical outcomes and lower health care costs among people who take them, but those savings don’t offset the cost of the drugs for health insurers at their current price point, a new analysis from CVS Health found.
Researchers at CVS Health, which also owns Aetna, analyzed 60,000 Aetna records for GLP-1 patients for obesity, diabetes and other conditions for up to three years. Here’s what they found:
GLP-1s lower ER visits
By the numbers:
According to CVS Health, GLP-1s led to 10-12% fewer emergency room visits in the first and second year of use. CVS Health also analyzed records of 4,000 people still taking the drugs after three years. That analysis showed a 34-42% decrease in hospitalizations.
Aetna’s data showed that insurers saved $9,400 per person on medical bills, but spent $13,300 more on prescriptions, adding costs of $3,900 per person, Reuters reports.
How much should GLP-1 drugs cost?
What they're saying:
Researchers concluded that a monthly price of $350 over three years would balance out the costs and benefits of the drugs, though the savings would depend on how healthy or sick a person is.
GLP-1 list prices are more than $1,000, but customers without insurance can buy them directly from drugmakers for $149-$449 per month, depending on the dose. Photo by: Michael Siluk/UCG/Universal Images Group via Getty Images)
"An older person with diabetes is going to have a higher risk for hospitalization than a younger person who is obese without diabetes," Dr. Amy Compton-Phillips, chief medical officer at CVS Health, told Reuters. "The higher-risk the person is, the quicker you get to a return on investment."
How much do GLP-1 drugs actually cost?
By the numbers:
GLP-1 list prices are more than $1,000, but customers without insurance can buy them directly through Eli Lilly, maker of Zepbound and Mounjaro, and Novo Nordisk, maker of Ozempic and Wegovy, for $149-$449 per month, depending on the dosage.
RELATED: GLP-1 drugs show promise in treating common hormonal disorder
Compton-Phillips told Reuters that Lilly and Novo’s direct-to-consumer pricing suggests they can still make money off the drugs by charging less than $350 a month.
The other side:
FOX Local reached out to Eli Lilly and Novo Nordisk for comment.
How much do insurers pay for GLP-1s?
Dig deeper:
According to The Washington Post, insurance companies won’t typically say how much they pay for the drugs, but companies like CVS Caremark – CVS Health’s pharmacy benefit manager – are able to negotiate "rebates" that make the drugs even cheaper than the $449 per month self-pay options for uninsured customers.
What do GLP-1 drugs treat?
Why you should care:
As GLP-1 drugs become more popular, they’re being used to treat more health conditions than type 2 diabetes and obesity. They’re approved for cardiovascular, liver and kidney disease, as well as sleep apnea. They’re also being researched as a potential treatment for substance use and hormonal disorders.
RELATED: VA launches trial of GLP-1 drugs to treat alcohol use disorder in veterans
According to CVS Health, more than 137 million adults in the U.S. are medically eligible for semaglutide (Ozempic and Wegovy).
"The analysis does not suggest that financial break-even should be the sole measure of a medicine’s value," CVS Health said. "It does show why price matters for employers and health plans trying to expand access to a highly effective class of drugs without adding unsustainable cost to the health care system."
The Source: This article includes information from CVS Health, Reuters, The Washington Post, The Associated Press and previous FOX Local reporting.