Sanders: Diabetes and weight loss drugs could bankrupt U.S. health care system
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The diabetes drug Ozempic and the weight-loss drug Wegovy could bankrupt America's health care system, according to a report released by Sen. Bernie Sanders, I-Vermont, on Wednesday.
The report from the Senate Health, Education, Labor, and Pensions (HELP) Committee, which Sanders chairs, finds:
If half of the adults with obesity in America took Wegovy and the other new weight loss drugs, such as Eli Lilly's Zepbound, it could cost $411 billion per year, more than the $406 billion Americans spent on all retail prescription drugs in 2022. Wegovy accounts for the "vast majority" of prescriptions for weight loss, according to the report.
If half of all Medicare and Medicaid patients who are obese took Wegovy and other weight loss drugs, Medicare and Medicaid could spend $166 billion per year, nearly as much as the two programs spent on all retail prescriptions drugs in 2022, $175 billion.
"Today's report makes it crystal clear: The outrageously high price of Wegovy and other weight loss drugs have the potential to bankrupt Medicare and our entire health care system," Sanders said in a statement. "The unjustifiably high prices of these weight loss drugs could also cause a massive spike in prescription drug spending that could lead to an historic increase in premiums for Medicare and everyone who has health insurance."
The Danish pharmaceutical company Novo Nordisk makes both Ozempic and Wegovy. The company responded to a request for comment via email on Thursday.
"We’re reviewing the report and continue to cooperate with the Chairman and his staff," said Jamie Bennett, director of media relations and issues management in the United States.
Americans pay nearly 10 times as much for Wegovy as Germans pay
The HELP report documents the vast difference in Novo Nordisk's pricing for both Ozempic and Wegovy in the United States compared to Canada and Europe.
"Today, Novo Nordisk charges Americans with Type 2 diabetes $969 a month for Ozempic, while this same exact drug can be purchased for just $155 in Canada, $122 in Italy, $71 in France, and $59 in Germany. Meanwhile, Novo Nordisk lists Wegovy for $1,349 a month in the U.S. while this same exact product can be purchased for just $186 in Denmark, $137 in Germany and $92 in the United Kingdom," the report states.
Sanders writes letter to Novo Nordisk CEO about 'unjustifiably high prices' of drugs
In an April 24 letter to Lars Fruergaard Jorgensen, chief executive officer of Novo Nordisk, Sanders says the "unjustifiably high prices" of Ozempic and Wegovy are already straining the budgets of Medicare and Medicaid and "severely limiting access" to the drugs.
Earlier this year, Sanders said, the North Carolina State Health Plan for teachers and state employees stopped covering Wegovy and other weight loss drugs after Novo Nordisk refused to lower prices. In addition, more than 35 state Medicaid programs don't cover Wegovy, and dozens of states have "severely restricted" Ozempic coverage because of the "outrageously high prices of these drugs," according to Sanders.
"The scientists at Novo Nordisk deserve great credit for developing these drugs that have the potential to be a game changer for millions of Americans struggling with type 2 diabetes and obesity," Sanders said. "As important as these drugs are, they will not do any good for the millions of patients who cannot afford them."
Sanders also calls Jorgensen to task for the difference in pricing for Ozempic and Wegovy, even though they are the same drug − semaglutide − according to Sanders.
"Novo Nordisk charges Americans with obesity nearly $400 more every month than those with type 2 diabetes for the same product provided in similar doses," Sanders said.
Yale University researchers find it costs less than $5 a month to manufacture drugs
In his letter to Jorgensen, Sanders also cites researchers at Yale University who found both Ozempic and Wegovy can be profitably manufactured for less than $5 a month.
"In my view, the American people should not have to pay up to $1,340 a month for prescription drugs that cost less than $5 to manufacture and can be purchased at a fraction of this price in other developed countries," Sanders said.
Contact Dan D’Ambrosio at 660-1841 or ddambrosi@gannett.com. Follow him on X @DanDambrosioVT.
This article originally appeared on Burlington Free Press: Senate report finds weight loss drugs could bankrupt U.S. health care
