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Monthly Healthcare Insights: GLP-1 drugs, automated insulin delivery

By Jeff Levin-Scherz, MD, MBA | April 17, 2025

Our population health leader weighs in on GLP-1 drugs, automated insulin delivery, out-of-pocket drug costs and more.
Health and Benefits|Benessere integrato
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GLP-1 anti-obesity medicines remain too expensive

Researchers from the University of Chicago modeled the clinical and financial impact of anti-obesity medications: Zepbound (tirzepatide), Wegovy (semaglutide) and two oral generic drug combinations, phentermine-topiramate and naltrexone-bupropion. They compared the effectiveness of each of these drugs with each other and with lifestyle change alone.

In their simulation model, they used data from 4,823 adults in the 2017–20 National Health and Nutrition Examination Survey (NHANES), who represent 126 million eligible U.S. adults who met the criteria for anti-obesity therapy, i.e., either BMI>=30 or BMI>=27 with a metabolic complication. They found that the cost of tirzepatide was about $197,000 per additional quality-adjusted life year (QALY), and the cost of semaglutide was about $468,000 per QALY. In general, drugs should cost under $100,000 or $150,000 per QALY to be considered cost-effective. They found that Zepbound’s net price would have to drop by 31% and Wegovy’s net price would have to drop by 82% for these drugs to be affordable at $100,000 per QALY.

Generic anti-obesity drugs are cost-saving (naltrexone-bupropion) or cost-effective (phentermine-topiramate).

This study was done in late 2024, but there are some clinical benefits of GLP-1 medications that the researchers didn’t include in this model. For example, we know that GLP-1 drugs lower the risk of progression of kidney disease in those with diabetes, lower the risk of obesity-related cancers and lower the risk of steatohepatitis (fatty liver disease). These drugs also are helpful for people with sleep apnea, which is associated with high blood pressure and increased cardiac risk. Including these benefits in the microsimulation model would have made the GLP-1 drugs look a bit more cost-effective.

The researchers included the costs of medication, other medical therapy and worker productivity in their analysis.

The clinical results of both GLP-1 drugs, especially tirzepatide, are impressive. According to the model, a population of 100,000 people on tirzepatide had over 46,000 fewer cases of obesity and 32,000 fewer cases of diabetes than a population treated with only a lifestyle management program. Semaglutide achieved substantial but smaller clinical benefits. Benefits from the generic drugs were much smaller, although their low costs made them more cost-effective.

Another way to look at this is how many people needed to be treated to prevent a premature cardiovascular or diabetes-related death. This helps give a sense about just how much more effective the GLP-1 medications are compared to the generic combination medications.

Implications for employers

  • This modeled study suggests that employers should at least offer access to the two combination generic medications for obesity if budgets allow.
  • This research also strengthens the case to push pharmaceutical companies and pharmacy benefit managers for lower prices of tirzepatide and semaglutide.
  • Employers that cover GLP-1 medications for obesity are improving the health of their members.
  • Bariatric surgery is also highly effective, and a one-time cost. Here’s a link to a past post about a study that showed that bariatric surgery is more cost-effective than GLP-1 drugs for obesity treatment. However, there aren’t enough bariatric surgery centers to treat nearly all those who could benefit from this procedure.

Automated insulin delivery beats standard insulin in T2D

Automated insulin delivery systems (AID) are becoming more common among people with Type 1 diabetes. These systems use a glucose monitor to give insulin at regular intervals. Type 1 diabetes patients produce almost no insulin and would die without insulin therapy. However, these systems aren’t as commonly used in those with Type 2 diabetes (T2D). T2D is over twenty times as common as Type 1, and often (although not always) affects those who are older and overweight or obese.

Researchers randomized 319 people with Type 2 diabetes (T2D) who were getting insulin treatment to either have an AID or be maintained on their previous insulin therapy. This was a short study (13 weeks) that showed that AID was safe when used in T2D. It also led to lower hemoglobin A1C (HbA1C) levels, a sign of better diabetes control. Patients with AID also had blood sugar in the target range for longer, 64% of each day, compared to 52% of each day for those without AID.

Implications for employers

  • Members with poorly controlled T2D may be recommended to move to AID for their insulin administration.
  • These AID units cost $6,000-$9,000 and would likely increase the cost of diabetes care, if used.
  • Better HbA1C control is associated with fewer complications of diabetes, such as kidney failure, blindness and amputations.
  • Other drugs for diabetes, like GLP-1s and another drug class SGLT-2s, are also very effective. This should lead to fewer members needing insulin therapy in the future.

Women pay billions more in out-of-pocket drug costs than men (by Patricia Toro, MD MPH)

A “pink tax” refers to products or services marketed to women that are priced higher than identical products marketed to men. GoodRx recently posted a study looking at medications filled by women and men and found that women spend nearly 30% more out of pocket on prescriptions, totaling $8.5 billion more ($39.3 billion by women versus $30.5 billion by men) in 2024.

The higher spending was due to several reasons. First, women see their healthcare providers more often. Second, women have a higher burden of diseases and conditions overall and fill more often and more expensive medications. Third, women outspend men, particularly in depression and anti-anxiety treatments. Lastly, there are some conditions that affect only the female anatomy, like endometriosis, which raise overall costs for women.

The highest difference in costs of medications between women and men came in the age group of 18–44 years, prime years in the workforce. In some years within this age range, the difference in spend was up to 64% higher for women. The only age range where men consistently outspent women was in boys under age 18 years, likely due to higher rates of ADHD diagnosis and treatment in boys.

Women also spend more to maintain and improve their health than men, according to this GoodRx report. That ongoing care might lead to earlier diagnoses and less productivity loss. While this excess spending among women isn’t a traditional “pink tax,” it’s another way that women face higher healthcare expenses than men.

Implications for employers

  • Studies that assess affordability without considering gender might understate the threat of financial insecurity to women.
  • Employers can make sure that carriers correctly administer women’s preventive care services, which the Affordable Care Act requires to be offered with no cost sharing.
  • Employers can consider lowering or eliminating cost-sharing for generic medications, particularly for mental health conditions.

Breast and colorectal cancer screening rates have rebounded

JAMA says that breast cancer and colorectal cancer screening rates that went down during the pandemic are now back to the levels before the pandemic. However, screening for cervical cancer is still lower than in 2019. Cervical cancer screening increased post-pandemic in those with a college education but decreased in those with a high school degree or less education. The researchers used data from the National Health Interview Survey. This survey has many questions about different types of colorectal cancer screening. However, this survey tool often reports lower colorectal cancer screening rates than are reported in claims-based analysis. The National Committee for Quality Assurance (NCQA) reports that 59.2% of eligible adults were up to date on colorectal cancer screening in 2023.

The researchers didn’t investigate rates of screening for lung cancer. Lung cancer screening rates are abysmally low; only 6% of those currently eligible get appropriate lung cancer screening.

Implications for employers

  • Employers can keep helping to promote cancer screening by telling employees how important it is to get cancer screening. They can also say that most cancer screenings are free of cost.
  • Cancer screening doesn’t lower medical claims costs, but it helps people get diagnosed earlier and stay healthy. It can also prevent disability and early retirement of employees.

Author


Managing Director and Population Health Leader

Jeff is an internal medicine physician and has led WTW’s clinical response to COVID-19 and other health-related topics. He has served in leadership roles in provider organizations and a health plan and is an Assistant Professor at Harvard Chan School of Public Health.

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