GLP-1 medications have been shown to improve health and offer strong value for their price, yet many insurance plans continue to restrict access. Researchers at the University of Mississippi are investigating the financial and practical reasons behind those limits, along with the consequences for patients.
A recent analysis from the Institute for Clinical and Economic Review, an independent nonprofit that assesses the value of medical treatments, concluded that GLP-1 drugs including Ozempic, Wegovy and Zepbound are cost-effective. In other words, the health improvements they provide are considered substantial enough to justify their price.
Why Cost-Effective Does Not Mean Affordable
In a study published in the Journal of Managed Care and Specialty Pharmacy, Sujith Ramachandran, associate professor of pharmacy administration, explained that a treatment can be cost-effective without being cost-saving for insurers.
"The ICER report shows that GLP-1s, at the cost that they are currently being sold, provide tremendous value to society," he said. "But the impact they create on the budget is still massive.
