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| Do Ozempic and Wegovy Cost |
Drug companies are making billions from a new class of in-demand weight-loss treatments. But the prices are not what they seem.
High prices of obesity drugs and potential for price competition
1. Obesity drugs' high prices and affordability concerns:
- Powerful drugs for obesity are very expensive, ranging from $900 to $1,300 every four weeks
- Researchers warn that adding these drugs to the health care system could increase spending by 50 percent
- The drugs' list prices differ significantly from the net prices, which are lower due to secret deals with insurers
- Economists predict that as competition increases, prices will decrease
- Manufacturers are currently reaping significant profits from the high demand for these drugs
2. Net prices of obesity drugs and their impact:
- Net prices for obesity drugs are much lower than their list prices
- Estimated net prices for Wegovy, Ozempic, and Mounjaro are $700, $300, and $215 respectively, every four weeks
- Net prices are approximately $650, $650, and $800 less than their respective list prices
- The extent of discounts offered by manufacturers surprised economists
- Net prices may change over time due to fluctuations in prices and prescriptions
3. Competing drugs and their impact on pricing:
- Competition between drugs like Ozempic and Mounjaro may drive down prices
- Wegovy, which currently dominates the market, has an unexpectedly low net price
- The net price of Ozempic is substantially lower than the net price of Wegovy
- Net prices are influenced by market competition and may fluctuate
4. The value of weight loss and associated costs:
- Obesity increases the risk of expensive diseases like diabetes and heart disease
- Obesity-related health costs account for billions of dollars annually
- The value of weight loss to patients and society is a key consideration
- Treating obesity can lead to cost savings by reducing obesity-related health problems
5. Affordability challenges and insurance coverage:
- The net prices of obesity drugs remain too expensive for many potential patients
- Medicare and few state Medicaid programs do not cover weight-loss drugs
- Insurers may not cover obesity medications, considering them vanity drugs
- Cheaper health insurance plans often have high co-pays and deductibles that make drugs like Wegovy unaffordable
- Lower-income patients may be unable to access these drugs due to cost
6. The need for lower prices and increased access:
- Competition among drug manufacturers is expected to lead to lower prices
- The high prices of obesity drugs have drawn comparisons to the initial costs of drugs for hepatitis C
- Reducing the cost of obesity treatment would alleviate the burden on the health care system
- Insurers should consider the long-term cost savings and benefits of obesity drugs
7. Competition and the Decline in Hepatitis C Treatment Prices:
- The prices of hepatitis C treatment dropped as competitors entered the market, giving pharmacy benefit managers more leverage.
- The same scenario may happen with Wegovy, an obesity treatment, as it currently has no direct competition but that will change soon.
