Your Wegovy May Pay for Itself

 

 

“The Roaring '20s spawned two of the most important medications ever: insulin and penicillin.

 

The 2020s may repeat this feat with another incredible medical innovation -- GLP-1 weight-loss therapies. Drugs like Zepbound (Eli Lilly) and Wegovy (Novo Nordisk) are delivering phenomenal results in a country where some 75% of adults are overweight or obese.

 

But with GLP-1 list prices exceeding $1,000 a month, most employers have declined to cover the drugs for weight loss -- leaving roughly 100 million beneficiaries to look for ways to pay themselves.

 

Politicians have responded with outrage. The Inflation Reduction Act of 2022 added GLP-1s to the list of medications subject for Medicare price negotiation. President Trump has demanded price parity with what other countries have negotiated, and last week he said he would "deploy every tool in our arsenal" if pharmaceutical companies don't lower prices. Connecticut is seeking federal approval to produce generic versions, despite patent protection until the 2030s.

 

But the market has beaten politicians to the punch. Although most employers aren't covering GLP-1s, demand remains high. A PwC survey this year found that 30% to 35% of Americans are interested in using them. In response, Eli Lilly and Novo Nordisk have launched direct-to-consumer cash pricing for Zepbound and Wegovy.

 

Without the middleman of health insurance, these out-of-pocket prices are now $499 a month.

 

Competition has pushed prices down, and with new therapies on the horizon they are likely to keep falling.

 

These drugs are more affordable than they first appear. Americans spend hundreds of dollars a month on food -- an $1,442 a month for households in the top income quintile and of $616 in the second lowest quintile. Some may find that lower food spending offsets half -- or even all -- of monthly GLP-1 costs. A 2024 paper in the International Journal of Obesity found a median reduction of $240 a month in food and drink costs among surveyed U.S. GLP-1 patients. Another study by researchers at Cornell University found a 5.5% reduction in grocery purchases within six months of adopting a GLP-1, and an 8.6% decline in spending at fast-food chains, coffee shops and limited-service restaurants.

 

Combined with potential reductions in obesity-related healthcare costs, this raises the question: Why do we need most-favored-nation pricing, patent workarounds and other government interventions for GLP-1s?

 

We don't. Instead, employers could contribute a defined amount -- perhaps $100 or $200 a month, ideally into a health savings account -- to help employees cover prescriptions. And more cash purchases would eliminate the need for cumbersome prior authorizations and battles with insurers, which pile on costs.

 

Eli Lilly and Novo Nordisk are trying to transform how patients get access to medication, and Washington has done its part by expanding HSA access. Now it's time to let consumers roar into a competitive marketplace -- without unnecessary government intervention.

 

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Mr. Buck is CEO of CancerSurvivalRates.com and a consultant to healthcare companies.” [1]

 

1. Your Wegovy May Pay for Itself. Buck, Stephen.  Wall Street Journal, Eastern edition; New York, N.Y.. 06 Aug 2025: A13.