The Impact of GLP-1 Prices on Medicare and the Government

📉GLP-1 prices could cost Medicare a significant amount of money, but not as much as estimated in a recent op-ed.

💰Discounting plays a major role in the GLP-1 market, with prices typically reduced by 40% to 60%.

📆Certain GLP-1 drugs, like Semaglutide, are subject to negotiated prices and could go on the Medicare list as early as 2027.

🔎The debate focuses on extending price negotiation under the IRA to cover GLP-1 drugs for weight loss.

💊GLP-1 drugs not only provide productivity benefits but also offer direct health benefits, particularly for Medicare beneficiaries with comorbidities.

How much will GLP-1 drugs cost Medicare?

—The exact cost to Medicare is uncertain, but it is expected to be significant, although not as high as estimated in a recent op-ed.

Are GLP-1 prices heavily discounted?

—Yes, the GLP-1 market sees discounts of around 40% to 60%.

When will GLP-1 drugs be subject to negotiated prices?

—GLP-1 drugs like Semaglutide could go on the Medicare list and be subject to negotiated prices as early as 2027.

What is the focus of the debate surrounding GLP-1 drugs?

—The debate centers around extending price negotiation under the IRA to cover GLP-1 drugs for weight loss.

What are the benefits of GLP-1 drugs?

—GLP-1 drugs not only provide productivity benefits but also offer direct health benefits, especially for Medicare beneficiaries with comorbidities.

00:06The debate around GLP-1 prices and availability is ongoing, with ballooning costs posing a significant risk to the government.

01:24GLP-1 drugs, like Semaglutide, are subject to negotiated prices, and they could potentially be listed on Medicare as early as 2027.

02:11The focus of the debate is on extending price negotiation under the IRA to cover GLP-1 drugs for weight loss.

03:21GLP-1 drugs offer not only productivity benefits but also direct health benefits, particularly for Medicare beneficiaries with comorbidities.