Project 2025: Abortion Policy – The Fulcrum

But even as supply rebounds, access to these drugs will remain out of reach for most Americans. That’s because brand-name versions of the drugs cost between $11,000 and $16,000 a year, a price that’s out of reach for most people.

Attempts to control prices through legislation face serious obstacles, both in the divided halls of Congress and in the courts, where determined legal opponents await. Sen. Bernie Sanders (I-Vt.), chairman of the Senate Health, Education, Labor and Pensions Committee, hopes that the pressure at upcoming hearings will force Novo Nordisk, the maker of Wegova and Ozempic, to voluntarily lower its prices. History shows that pharmaceutical companies rarely buckle under the weight of prices, even in the face of public scrutiny.

Fortunately, Congress can implement a simple solution to make these drugs affordable, thereby improving the country’s financial and physical health. Before we explain this strategy, here’s why our country needs effective, affordable, and accessible weight loss drugs.

Taking on the obesity epidemic

About 42 percent of American adults are obese, putting them at dramatically increased risk for a range of complications: diabetes, heart disease, kidney failure, leg amputations, cancer, and serious musculoskeletal problems. The economic impact of obesity is staggering, with health care costs estimated at $260 billion per year.

For decades, health experts have urged Americans to exercise more, eat better and change their lifestyles, while also urging lawmakers to regulate food and address the “social determinants of health” that lead to excessive weight gain. Today, billions of taxpayer dollars are spent on government nutrition and exercise campaigns—on top of the $190 billion Americans spend on weight-loss products, programs and supplements.

Despite these extensive efforts and expenditures, obesity rates continue to rise, as do the consequences associated with them, contributing to 500,000 preventable deaths each year.

The Huge Promise of GLP-1 Drugs

Studies show that all GLP-1 drugs lead to significant weight loss, an average of 15 percent of the user’s body weight. And when obese people combine regular exercise with semaglutide, the active ingredient in Wegovy, I lost an average of 34 pounds.

In addition to weight loss, GLP-1 medications have been shown to reduce the incidence of diabetes and cardiovascular eventsprevent kidney failure and potentially improve cognitive function in patients with Alzheimer’s disease.

Despite all the known and potential benefits, the high prices of weight-loss drugs force insurers and employer health plans to limit coverage, depriving many patients of access to these beneficial options.

Current financial burden

The cost of providing GLP-1 drugs to all obese Americans would be exceed $1 trillion per yeareven with drug rebates. For comparison, that’s more than twice what Americans spend on all their prescription drugs in a year. What’s more, that amount dwarfs $260 billion in projected savings if obesity were eliminated.

And because patients who stop taking their medications regain an average of two-thirds of the weight they lost, that trillion-dollar annual cost would continue indefinitely. From the perspective of the American health care system, this ongoing expense (an estimated 25 percent annual increase in total health care spending) would strain funding for other important components of care, including hospitals and physicians. It would also cause insurance premiums and out-of-pocket costs to skyrocket.

AND last report from Sanders’ office highlighted the huge disparity in GLP-1 drug prices around the world: Americans pay more than $1,300 for a 28-day supply of Wegovy, while patients in countries like Denmark ($186), Germany ($137) and the United Kingdom ($92) pay much less.

That’s because governments in almost every country, except the United States, negotiate prescription drug prices rather than allowing pharmaceutical companies to charge what they think is best for their shareholders.

A hidden truth

Contrary to what people might assume, these drugs are not expensive to produce. A team of scientists from Yale and Harvard has determined that semaglutide can be produced less than $5 per month.

In May 2024, the telemedicine company Hims & Hers began selling compound version (created by a pharmacist) GLP-1 drug semaglutide for $199 per month, about 85 percent less than the Wegovy and Ozempic brands. This reflects a profitable but more appropriate price.

Hims & Hers can sell its version of these patented weight loss drugs because Congress has allowed the patented drug to be mixed and sold once the FDA determines a drug shortage. However, once the GLP-1 shortage is resolved, companies like Hims & Hers will be forced to discontinue production. This will jeopardize the health of current users and price out many more Americans who are still struggling to lose weight.

Creative Solution for FDA and Congress

Congress can make these life-saving weight-loss drugs available to all eligible Americans by expanding the FDA’s definition of a “drug shortage.” While “shortage” currently refers solely to an inadequate supply, a more modern definition would include drugs that are unaffordable and therefore unavailable to millions of people.

Thanks to an amendment to the Food, Drug and Cosmetics Act, the expanded definition would allow compounded versions of drugs to remain available at a reasonable price, even as manufacturers of weight-loss drugs increase production.

The reason drugmakers price GLP-1 at $10,000-$16,000 per year has little to do with R&D, overhead, or manufacturing costs. The reason is simple: greed.

Such pricing strategies may be tolerated in other industries, but when the health of tens of millions of Americans is at risk, Congress has a duty to act. Expanding the definition of “shortage” would break the monopoly power of incumbent manufacturers, improve public health, save lives, and encourage GLP-1 manufacturers to lower their prices. The time for legislative action is now.