Novo Nordisk recently announced a significant initiative aimed at making its GLP-1 weight loss drugs, Ozempic and Wegovy, more accessible for individuals paying out of pocket. As part of this initiative, a promotional offer will allow patients with prescriptions to purchase the two lowest dosages of these medications for just $199 per month for a limited period, ending in March.
This discounted price applies exclusively to the 0.25 mg and 0.5 mg doses. After the initial two-month promotional period, the pricing will revert to $349 per month for these doses, as well as the 1 mg dose of Ozempic and all dosages of Wegovy. Notably, the highest dose of Ozempic, which is 2 mg, is excluded from this pricing strategy.
In a recent press release, Dave Moore, executive vice president of U.S. operations at Novo Nordisk, highlighted the complexities within the U.S. healthcare system and voiced the company’s commitment to providing immediate financial relief for patients who lack adequate insurance coverage or opt to pay out of pocket.
Despite these new offers, the list prices for Ozempic and Wegovy remain high, generally exceeding $1,000 each month. This promotional pricing follows a prior arrangement between Novo Nordisk and Costco, which had allowed for low doses of the medications to be purchased for $499 a month.
The demand for GLP-1 medications has surged, as they are not only favored for weight loss but have also demonstrated benefits in improving heart health, addressing obstructive sleep apnea, and potentially reducing cancer mortality. According to research conducted by KFF, nearly one in five U.S. adults report having taken a GLP-1 medication, with one in eight currently on one. Of those using these medications, about 25% have insurance but still face out-of-pocket expenses.
Experts in health policy have reacted to the new pricing strategy with cautious optimism. Dr. Shauna Levy, medical director at Tulane Weight Loss Center, described the discounts as “great news” that could potentially widen access for many patients, especially considering that less than 25% of the population has commercial insurance that covers GLP-1s.
While the introductory rate of $199 per month might draw initial interest, Professor Stacie Dusetzina from Vanderbilt University Medical Center cautioned that the eventual return to the higher price could deter patients from continuing the medication, particularly if they perceive minimal benefits. She argued that this pricing strategy is clever but raises concerns regarding its implications for patient health outcomes.
Although the promotional pricing offers a pathway to increased access, there are concerns that it could inadvertently impact insurance coverage for GLP-1 medications. As employers continue to assess their healthcare benefits, some may view the lower cash prices as a justification to limit coverage for their employees.
Ultimately, both Levy and Dusetzina acknowledged that while the price reductions could enhance affordability for some, they may also present challenges for patients reliant on insurance. Furthermore, they noted that GLP-1 medications are just one of several options available for tackling obesity, with other interventions such as bariatric surgery being more extensively covered by insurance. Overall, experts see potential benefits from these pricing changes but urge caution regarding the broader implications for healthcare access and affordability.
