Congressional leaders grilled Novo Nordisk CEO Lars Fruergaard Jørgensen over the high prices of the company’s diabetes and obesity drugs, Ozempic and Wegovy. The hearings highlighted the challenges of accessing and affording these drugs, especially as obesity rates in the U.S. continue to remain high. The list price of Wegovy, at $1,349 per month, has raised concerns about affordability for insurers and patients.
During the hearings, Jørgensen blamed pharmacy benefit managers (PBMs) for the high costs, stating that the list price is the starting point for negotiations with PBMs. However, critics argue that the convoluted system allows PBMs to profit while adding to the rising costs of healthcare in the U.S. Despite the blame shifting, there is hope for potential price reductions, as Senator Bernie Sanders announced commitments from major PBMs to not limit coverage if Novo Nordisk reduces the list price of its drugs.
Access to these medications could improve if Medicare is able to negotiate their prices, but this process is slow and wouldn’t kick in until 2027. Sanders emphasized the moral importance of ensuring access and affordability for these drugs, as they have the potential to save lives and improve quality of life for many Americans.
While the hearings shed light on the impact of obesity drugs on health outcomes, significant changes to the drug pricing system are needed to ensure long-term benefits for public health. Without addressing the broken system of drug pricing in the U.S., the potential positive impact of these medications on chronic diseases will remain out of reach.
Source
Photo credit www.centralmaine.com