On Wednesday, two reports were released that indicate the significant increase in spending on GLP-1 drugs like Ozempic and Wegovy. These medications have been a major contributor to the overall rise in drug spending by healthcare providers such as pharmacies and hospitals last year.
According to the American Society of Health-System Pharmacists, GLP-1 treatments were a major contributor to the overall increase in drug spending by healthcare providers last year. Specifically, expenditures on Novo Nordisk’s semaglutide, marketed as Ozempic for diabetes and Wegovy for obesity, doubled to $38.6 billion, making it the top-selling medicine in 2023.
Another report from the health policy research organization KFF examined the impact of the recent approval of Wegovy for preventing cardiovascular complications. While Medicare typically does not cover drugs for weight loss purposes, the approval of Wegovy for reducing heart risks means that the federal payer can now cover the drug. Researchers conservatively estimate that Medicare could spend $2.8 billion in a year on Wegovy alone as a result of this new approval.