The blockbuster weight-loss drug Wegovy could bankrupt the U.S. health care system unless the price drops, according to a staff report released Wednesday by the Senate Health Committee chairman’s office. Bernie Sanders (I-Vt.).
Unless prices drop dramatically, Wegovy and weight-loss drugs could lead to Americans spending $1 billion a year on prescription drugs, the report concluded.
“Pricing medicines based on their value cannot serve as a blank check, or as the sole determinant of how we understand what to pay for essential goods,” the report stated. As important as these medicines are, they will do no good to the millions of patients who cannot afford them.”
The report increases pressure from Sanders on Danish drugmaker Novo Nordisk to reduce the price of Wegovy and Ozempic.
In April, Sanders and the Health Committee launched an investigation into why the company charges Americans substantially higher prices than other countries.
Novo Nordisk charges Americans with type 2 diabetes $969 a month for Ozempic, compared with just $155 in Canada, $122 in Italy, $71 in France and $59 in Germany.
The company lists Wegovy for $1,349 per month in the US, compared to $186 in Denmark, $137 in Germany and $92 in the UK
According to the Centers for Disease Control and Prevention, nearly 42% of American adults have obesity and more than 11% of the population has diabetes.
If half of American adults with obesity took Wegovy and other new weight-loss drugs, it could cost the health care system $411 billion a year — more than the total spending on all retail prescription drugs in 2022, it found. the report.
The committee’s report noted that the company has not yet provided net pricing data requested as part of the investigation, but staff estimated net pricing at $809 per month after discounts.
Many private health insurance plans cover drugs to some extent, although employers and plans have increasingly restricted access or ended coverage altogether as they struggle with costs.
Medicare is prohibited by law from covering medications exclusively for weight loss. However, Wegovy was recently approved by the Food and Drug Administration to reduce the risk of serious heart problems in people who are overweight or obese.
With this new approval, the Centers for Medicare and Medicaid Services has opened the door to coverage for more patients.
In a statement, a Novo Nordisk spokesperson said the company is reviewing the report and continues to cooperate with the investigation.
This story originally appeared on thehill.com read the full story
