The Growing Demand for Weight Loss Medications and Income Disparity
The market for weight loss medications is experiencing significant growth in the United States, despite the high cost of these drugs and limited insurance coverage. A recent survey conducted by Evercore ISI focused on GLP-1s, a new class of medications used for Type 2 diabetes and obesity, revealed that the willingness of patients to pay out of pocket for these treatments is strongly linked to their annual income.
Income Disparity in Out-of-Pocket Expenses
The survey, which involved over 600 participants currently using or considering GLP-1 medications, highlighted the disparity in out-of-pocket expenses based on income levels. The findings underscore the issue of equity in access to these breakthrough medications, especially in the absence of widespread insurance coverage.
Popular GLP-1 Medications and Their Costs
GLP-1 medications such as Novo Nordisk’s Wegovy and Ozempic, as well as Eli Lilly’s Zepbound and Mounjaro, come with price tags ranging from $900 to $1,350 per month before insurance discounts. While both companies offer savings programs to alleviate out-of-pocket costs, the survey revealed significant differences in the maximum amount patients are willing to pay based on their income.
Income Influence on Out-of-Pocket Spending
Participants in the survey with annual incomes exceeding $250,000 indicated a willingness to pay over $300 per month out of pocket for a GLP-1 medication, while those earning less than $75,000 were only willing to pay $50 or less. The data showed that individuals with higher incomes were more willing to invest in these treatments despite their hefty price tags.
Treatment Duration and Discontinuation Factors
Surprisingly, the survey also explored the duration of time patients stayed on these medications. It revealed that over 80% of individuals who stopped treatment did so within 12 months. Reasons for discontinuation varied, including cost concerns, achieving weight loss goals, or experiencing adverse effects.
Moving Forward
The survey outcomes shed light on the financial challenges individuals face in accessing crucial weight loss medications. Addressing income-based disparities in out-of-pocket expenses is crucial to ensure equitable access to these life-changing treatments. By understanding the impact of income levels on willingness to pay for medications, stakeholders can work towards creating a more inclusive healthcare system that prioritizes affordability and accessibility for all.