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Sen. Bernie Sanders on Tuesday predicted that covering GLP-1 drugs for weight loss could be financially ruinous for Medicare and private insurance and said generic manufacturers told him they could make the drugs at a much lower cost.
Why it matters: The Senate HELP Committee chair's comments at a roundtable he convened were a likely preview of arguments he'll make at next week's committee hearing with Novo Nordisk CEO Lars Fruergaard Jørgensen about the high costs of its Ozempic and Wegovy.
What he's saying: Sanders outlined specific concerns about the sticker prices of Ozempic and Wegovy and how they could be remedied.
- "The outrageously high cost of these drugs could bankrupt Medicare, while radically increasing insurance premiums to absolutely unaffordable rates," Sanders said.
- "The HELP Committee has heard concerns from across the country," he continued. "One of the largest health insurance companies in the country has told me that they would have to double premiums for all of their policyholders if they covered Wegovy and Ozempic for all eligible patients."
Sanders asserted that the U.S. costs of the drugs are based on "nothing less than excessive corporate greed" and that he has been talking for the last several months with CEOs of unnamed generic drug companies.
- "They are studying the matter, and they tell me that they can sell a generic version of Ozempic, the exact same drug that Novo Nordisk is manufacturing, to Americans for less than a $100 per month."
- Sanders clarified that he is focusing on Ozempic and Wegovy specifically from Novo Nordisk because "these may be some of the bestselling drugs in the history of the pharmaceutical industry."
- He said that even with rebates, the price of Ozempic is much higher in the U.S. than in other countries — about $969 per month compared with $59 in Germany, $71 in France, $122 in Denmark and $155 in Canada.
- Medicare doesn't cover GLP-1 drugs for weight loss but does pay for their use in treating type 2 diabetes and cardiovascular disease.
Zoom in: Sanders invited North Carolina state Treasurer Dale Folwell, physicians and a patient advocate to discuss the costs of GLP-1s at the roundtable.
What's next: The HELP Committee hearing with Jørgensen is scheduled for Sept. 24.
