Employers cutting off insurance coverage for weight-loss drugs

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To Shannon Saylor

August 2, 2023 | 1:31 PM

The unusual demand for expensive weight-loss drugs like Ozempic is forcing some employers to cut insurance coverage to offset rising bills, the report said.

The popular drug, which can cost as much as $1,350 a month for patients taking Wigoby and Saxenda, falls into the same class as the celebrity-fueled Ozempic craze.

This has put a strain on some employer-funded plans, causing premium spending to skyrocket to tens of millions of dollars, the Times said. Wall Street Journal.

The University of Texas recently announced that it will stop using Wegoby and Saxenda, developed by Danish pharmaceutical giant Novo Nordisk to treat diabetes, on September 1 because the costs have become too high for the University of Texas system.

A year and a half ago, UT Systems was billing $1.5 million a month for these weight loss shots that mimic the action of the GLP-1 hormone released by the pancreas after meals to make you feel full.

Now, that monthly payment has soared to more than $5 million, according to the magazine.

“Continuing to dispense these drugs would add an additional $73 million annually to prescription programs, which is an unsustainable amount,” UT Systems said, adding that premiums for all employees would also be maximized. He said it would rise by 3%.

The public university system noted that 3,200 of its employees enrolled in benefits programs use Wegoby or Saxenda prescriptions. This represents almost 3% of the 115,000 employees.

The Post reached out to UT Systems for comment.

Another employer, Ascension Healthcare, the second-largest private health care system in the U.S., which operates nonprofit and Catholic hospitals, announced on July 1 that it will launch anti-obesity drugs such as Wegoby and Saxenda on July 1, according to online reports. has discontinued the sale of news.

The St. Louis-based health care provider, which employs about 140,000 people and operates hospitals in 19 states, mostly in the Midwest and South, did not immediately respond to the Post’s request for comment. rice field.

Without insurance, the type 2 diabetes drug Ozempic (now better known as the fad first-aid semaglutide injection) could cost patients about $1,200 a month, he said. Web MD.

“But if you’re lucky enough to have insurance covering this drug, it could be cheaper,” the site adds, adding that one prediabetic patient covered by an Ozempic prescription had 30 days. I pointed out that it costs $25 per minute.

The University of Michigan employee benefits still include compensation for jabs, but the university said it increased the out-of-pocket amount from $20 to $45 in March to cut costs. HR site.

The move is intended to encourage health policyholders to try other cheaper options first.

For example, the out-of-pocket cost for the cheaper phentermine tablets is only $10 per month.

Experts say reimbursement cuts and other restrictions come at the expense of preventative treatments aimed at reducing costs to employers’ health plans.

“Everyone is concerned that this treatment will add a significant cost to health insurance,” said Michael Thompson, chief executive of the National Health Buyers Coalition, which includes organizations representing employers. he told the magazine. “With the prevalence of these medicines, this is one of the key issues that employers have to grapple with today.”

Ozempic and other drugs are often covered by insurance when prescribed for their intended purpose of treating type 2 diabetes and cardiovascular disease.

But after patients discovered its slimming benefits, its demand soared.

According to WebMD, it’s so popular that “diabetics are having a hard time finding it as supplies become scarce.”

Ozempic has exploded in popularity, especially among those wanting to lose weight, after it was revealed that celebrities such as Khloe Kardashian and Chelsea Handler admitted to using Ozempic.

“Americans are prescribed the drug” [Ozempic] It is being prescribed at an extraordinary pace, said to account for about 10% of global prescriptions,” said WebMD.

Elon Musk announced last October that he lost weight through fasting and Wegovy.

However, the prescription has also been accused of causing a number of harmful and bizarre side effects, including “ozempic butts,” in which users claim their derriere has flattened out with their stomachs, and “ozempic fingers,” in which their fingers turn over. It is Wrist sizes were also rapidly shrinking, and women began to worry that their engagement rings would come off.

The recent suspicion of side effects is even more serious. Last month, the Icelandic health authority reported that two patients with Ozempic and one with Saxenda had suicidal thoughts and thoughts related to self-harm.

Another Saxenda user also reported having thoughts of self-harm.

“The U.S. health care system is complex, with multiple factors impacting how chronic diseases are understood, treated and covered,” a Novo Nordisk spokesperson told the Post. “Importantly, Novo Nordisk is committed to ensuring the responsible use of our medicines.”

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