Lifesaving weight-loss drugs kept out of reach for most Americans

Drug-pricing and insurance mechanisms keep Big Pharma calling the shots

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Columnists

August 28, 2024 - 6:27 PM

It’s rare — miraculously rare — that a drug can have such a pronounced effect that its immediate benefits translate into health care savings for years, even decades. To the wonder drugs Harvoni and Sovaldi, which wipe out hepatitis C, we can now add the weight-loss medicine Ozempic and its cousins Wegovy, Mounjaro and Zepbound.

These drugs have shown remarkable effectiveness in reducing obesity. That points to long-term reductions in users’ vulnerability to the whole spectrum of obesity-related medical conditions, including diabetes, cardiovascular disease, bad knees and sleep apnea.

They appear to work on other unhealthful dependencies such as narcotic and alcohol addiction, and possibly even on Alzheimer’s.

Yet millions of Americans are unable to access these drugs, thanks to the two big, interrelated flaws in our health care system: unrestrained pricing by drug companies and the economics of health insurance.

We’ll explore how these factors work to deny access to drugs that address America’s No. 1 health malady. But first, a look at the seriousness of the obesity epidemic.

Weight is typically measured by the body mass index, or BMI, which correlates weight with height. Roughly speaking (and not accounting for differences between males and females), a “healthy” weight for a 5-foot-10-inch person is reckoned by the Centers for Disease Control and Prevention to be 128 to 173 pounds, which translates to a BMI of between 18.4 and 24.9.

Between 173 and 208 pounds places that person in the “overweight” category and heavier than that is judged to be “obese,” defined as a BMI of 30 or higher. Those with a BMI of 40 or higher, or 278 pounds for a 5-foot-10 adult, are “severely obese.”

America has been getting more obese over time. In 1960, about 31.5% of U.S. adults were overweight; in 2017 the figure was 30.3%. In 1960, however, 13.4% of adults were obese and 0.9% severely obese; by 2017, 42.8% of adults were obese and 9.6% severely obese.

The rate of obesity among children — about 20% — is especially worrisome. Obese children are more likely than those with healthy weights to have high blood pressure and diabetes, and more likely to be obese in adulthood.

The toll this epidemic takes on the economy is horrific. Obesity and its consequences cost the U.S. health care system nearly $173 billion a year, the Centers for Disease Control and Prevention estimates.

Experience with the weight-loss medicines thus far shows that they can cut the rates of obesity-related conditions materially. A five-year study of more than 24,000 nondiabetic but obese subjects published earlier this month by a team of Taiwanese researchers found not only significant reductions in heart disease, hypertension, stroke and kidney failure, but in mortality from all causes as well. Those in the control group (not receiving the drug) had a 3.5% annual mortality rate; for those given the drug, it was only 0.75%.

So why would stakeholders in our health care system not be beating down the doors to make these drugs more widely available?

The answer, of course, boils down to money.

The estimated cost of Wegovy and similar drugs for insurers, net of bulk discounts provided by manufacturers (Denmark-based Novo Nordisk for Wegovy and Ozempic and Indianapolis-based Eli Lilly for Mounjaro and Zepbound) runs from about $8,600 to $9,100 a year. That’s a big lift for insurers contemplating coverage of drugs for which the public demand can be in the millions.

That might work if insurers could be sure that the long-term savings from their enrollees’ health improvements would save them as much or more. In our fragmented health care system, however, they can’t be sure that they’ll still be covering those enrollees in the cost-avoidance period. Customers can move to other insurers or leave the employers who were providing the insurance.

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