Health news outlet, the Kaiser Family Foundation, analyzed Medicare Part D spending data and found that total gross spending on glucagon-like peptide-1 (GLP-1) drugs has soared from $57 million in 2018 to $5.7 billion in 2022.
The popular drugs, which include Ozempic, Wegovy, Mounjaro, and Rybelsus, are often used for weight loss, which Medicare does not cover. However, Part D plans can cover GLP-1 drugs when they are prescribed for other medically accepted indications, which currently include treating diabetes and reducing cardiovascular risk.
Even higher Part D spending on GLP-1s may be forthcoming. Policymakers are considering allowing Medicare to cover obesity drugs, and GLP-1 use for diabetic kidney disease is also expected to be on the horizon.
Despite their popularity, the annual cost of GLP-1 drugs is staggering at upwards of $11,000 at list prices. This cost has raised serious concerns about the fiscal impact of broad coverage of GLP-1 drugs. High demand, high prices, and emerging new uses are likely to put a significant burden on Medicare spending and Part D plan cost premiums.
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