GLP-1 Drug Spending Surges to Record Highs in 2023 as Medicare Approves Wegovy for Cardiovascular Risk Reduction

On Wednesday, two new reports were released that showed a significant increase in spending on GLP-1 drugs such as Ozempic and Wegovy. The American Society of Health-System Pharmacists reported that GLP-1 treatments were a major contributor to the overall increase in drug spending by healthcare providers, including pharmacies and hospitals, 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. These findings indicate that costs will continue to rise for both healthcare systems and government in the coming years due to increased spending on GLP-1 drugs like Ozempic and Wegovy.