Many pharmaceutical companies are raising the prices of numerous drugs, including popular weight-loss drugs like Ozempic and Mounjaro. For employers who cover these drugs, that could mean an increase in health care costs.
According to an analysis for The Wall Street Journal by 46brooklyn Research, a nonprofit that analyzes drug pricing, the price for a month’s supply of Ozempic — the diabetes treatment sought after for weight-loss — has shot up 3.5 percent to almost $970. A similar drug called Mounjaro went up 4.5 percent, to a monthly cost of well over $1,000.
Prices for other popular drugs including anti-inflammatory drug Dupixent, HIV treatment Biktarvy, and psoriasis therapy Skyrizi have also increased by about 5 percent (or more).
Each year, the cost of prescription drugs increases approximately 7.5 percent; these increases for Ozempic and Mounjaro are within normal inflationary bounds, says Nelly Rose, pharmacist at NFP, a leading benefits consultant.
That said, this year’s increases may impact employers more because “Ozempic and Mounjaro are already high-cost drugs with high prevalence and utilization, triggering a higher dollar amount cost increase year-over-year,” she says. “Employers will likely notice the financial impact of the inflation.”
The demand for these weight-loss drugs isn’t likely to slow down either. When asked about the reason for the price hikes, Novo Nordisk and Eli Lilly — the makers of Ozempic and Mounjaro — cited market demand in addition to inflationary pressures. More than 70 percent of American adults are considered overweight or obese, according to the CDC, translating to a high demand for such medication.
Covering said drugs through a workplace benefits program could be beneficial not only to employees, but also to the companies who decide to offer them long-term. Employees who honestly struggle with their weight are more likely to be on more expensive medication, or need more frequent hospital visits, Rose told Inc. Of course, keeping prices down is dependent on companies ensuring only employees who need the medication are prescribed.
Most drugmakers, 46brooklyn Research found, raised prices at a similar rate across the board, although the cost of some drugs increased by 10 percent or more. Drugmakers typically raise prices at the start of the year, but the WSJ notes that more price hikes could come in the next few weeks.
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