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Study: GLP‑1 Use Soared and Shifted Costs From Patients to Insurers and Taxpayers

A July study shows rapid uptake drove big jumps in total spending even as patient out‑of‑pocket payments fell, creating fresh questions about who pays for long‑term use.

Overview

  • A Northwestern University study published July 16 found GLP‑1 use climbed sharply from 2017 to 2022 and total payments per user rose substantially, especially among adults without diabetes.
  • The authors measured a 643% rise in use among adults without diabetes and a 230% rise among adults with diabetes between 2017 and 2022, and total payments per patient increased 157% for the first group and 36% for the second.
  • Average out‑of‑pocket payments fell over the same period by 26% for users without diabetes and 39% for users with diabetes, signaling that insurers, employers and government programs absorbed much of the added cost.
  • Medicare began an 18‑month GLP‑1 Bridge demonstration on July 1 that offers eligible beneficiaries access for a $50 monthly copay after negotiated price cuts, a move that widens access but concentrates spending pressure on public budgets.
  • The study used nationally representative MEPS data through 2022 and authors warn rising total drug spending could lead to higher premiums, greater taxpayer costs, tighter coverage rules, or reduced access for some patients as payers respond.