Good morning. I know several people on GLP-1 drugs. Some transformed their health; one used it to shed 10 pounds nobody thought she needed to lose. Such drugs have become the fastest-growing segment of drug spending, accounting for 10.5% of employers’ average pharmacy costs so far this year, vs. 8.9% in 2024. That’s up from 6.9% in 2023, when Americans spent $71.7 billion on such drugs. On average, employers pay between $8,000 and $10,000 per user each year for these drugs through healthcare plans.
I spoke with GoodRx CEO Wendy Barnes on the eve of the company’s announcement yesterday that it will offer various strengths of Ozempic and Wegovy for a cash price of $499 a month, which is roughly half the normal cost. Simple math would suggest that could be an attractive price for companies, too, which raises the question of how the growing list of consumer-focused healthcare offerings could impact the traditional employer-pay model.
“I would challenge the notion that all drug spend needs to flow through an insured model,” said Barnes. “We’re trying to get competitive pricing in the hands of every American.”
That argument resonates with Mark Bertolini, the former CEO of Aetna who’s now heading up Oscar Health, which is aiming for a more dynamic, personalized model of health insurance, not unlike what Progressive has done in other realms of insurance.
