Potential Weight Loss Medications like Ozempic Might Reduce Overall Medical Expenses As Well.
Potential Weight Loss Medications like Ozempic Might Reduce Overall Medical Expenses As Well.
The introduction of Ozempic, Wegovy, and other weight loss medications could potentially reduce medical expenses for individuals dealing with various health issues. Recent research published this week shows that an individual's health care expenditures often decrease as they lose weight.
Researchers from Emory University conducted a study analyzing health care spending among individuals with either private insurance or Medicare. They discovered that individuals who managed to lose as little as 5% of their body weight within a year's time generally spent less on health care. These findings could significantly impact the evaluation of the worth of brand new, more efficient weight loss medications, according to the researchers.
Though obesity itself isn't necessarily unhealthy, it can raise the risk of numerous health problems, including issues like knee pain, type 2 diabetes, and obstructive sleep apnea. Previous research has suggested that these obesity-related conditions are not only detrimental to our health, but they also take a toll on our financial well-being. For example, a 2021 study suggested that obesity in the U.S. was linked to $260 billion in annual health care expenses as of 2016. While past studies have suggested that treating obesity can lower health care expenses, the researchers claim that their new study provides a more extensive and recent analysis of these financial benefits.
The researchers analyzed data from the Medical Expenditure Panel Survey–Household Component, a recurring and nationally representative survey of Americans' health-related spending. By investigating how individuals' spending may have changed following any major weight loss, they were able to track how people's spending might alter. The researchers focused on Americans who had a body mass index over 25 (the threshold for being overweight) and who had at least one of ten chronic conditions, eight of which are associated with obesity, such as type 2 diabetes or back pain. The researchers' analysis included 17,209 adults, including over 3,700 individuals with Medicare.
On average, people with private insurance who lost 5% of their body weight spent 8% less on their health care (approximately $670 in 2023 dollars), while those who lost 25% of their weight spent 34% less on health care (nearly $3,000). The savings were roughly equivalent for people on Medicare percentage-wise, but higher in terms of the actual amount saved due to their higher net costs. Medicare patients who lost 5% body weight were estimated to spend an average $1,262 less (7%), while those who lost 25% body weight spent an average $5,442 less (31%).
The researchers concluded that 'In this cross-sectional study, the projected annual savings from weight loss among US adults with obesity were substantial for both Medicare and employer-based insurance.' These findings primarily come from individuals who lost weight before the newer GLP-1 drugs, such as Ozempic, became widely available. Despite being first approved for diabetes treatment in 2017, Ozempic was not extensively prescribed for obesity treatment until after the approval of Wegovy in 2021 (both drugs contain the active ingredient semaglutide). Nevertheless, the researchers suggest that the potential savings associated with weight loss could be even greater today, considering these medications' effectiveness in aiding individuals in weight loss.
Another relevant detail is that Ozempic and similar drugs are not inexpensive, with list prices reaching over $1,000 per month. While many insurance plans cover much of this cost, many private insurance plans have limited coverage of these drugs, and Medicare is explicitly prohibited from covering anti-obesity medications. This high price undeniably affects any discussion about their cost-effectiveness. However, other studies have found that bariatric surgery can result in net savings in health care spending by effectively reducing obesity, even though it carries a high initial cost (up to $26,000 per patient). Additionally, the researchers only looked at health care costs related to individuals' existing obesity-related conditions. Since many people currently taking GLP-1 therapy may avoid developing these conditions entirely, the projected savings in health care could be even higher than their estimates.
The researchers concluded that 'Improving access to new weight loss medications, along with existing evidence-based behavior change and weight loss interventions, should help reduce health care spending associated with obesity in the U.S.' Furthermore, it's not just money that these drugs could save us in the end, but lives. A study from earlier this year estimated that higher adoption of GLP-1 drugs could prevent 42,000 deaths annually in the U.S. from obesity- or diabetes-related health problems.
The introduction of future weight loss medications, potentially including GLP-1 drugs like Ozempic and Wegovy, could further reduce health care expenses for individuals dealing with weight-related health issues, building upon the financial benefits previously observed. With advancements in science and technology, these new medications could potentially offer more efficient ways to manage obesity, contributing to improved health and reduced healthcare costs in the future.
Given the significant financial savings associated with weight loss, investing in future research on cost-effective weight loss strategies, such as the use of advanced science and technology, could yield substantial returns in terms of both improved health and reduced healthcare expenditures.