HLTH 2024 IN LAS VEGAS
TaLKING About GLP1s: ARe they Under Covered by Insurers?
Parnassus Leadership Insights
By John Lankford
Our team is active within the HLTH meeting this week and one of the sessions on Monday was focused on the new trends toward using drugs that have been classified by the pharmaceutical manufacturers for a specific set of treatments to also be used for weight management. These drugs are broadly classified as GLP1’s and the discussion was around the balance between their broad use and the associated economics of covering that cost (especially for benefits plans).
A panel included Scott Honken, COO for WeightWatchers for Business, Dr. Shantanu Nundy EVP and CHO for Accolade, Julia Hu, CEO and Co-Founder of Lark, and Patrice Johnson, Director of Wellbeing Benefits for MGM Resorts.
MGM has experienced PBMs standing in the way of GLP1 ‘s so the rebate goes away so they lose a lot and so there is a conflicted motivation. The cost saving potential is so different based on BMIs 32-40 but there is no way to have nuance at this point for employers to approve based on this so it’s an all or nothing proposition right now and so they are seeing limits as to what they can actually do within the current framework.
The general reality that surrounded the conversation was that these drugs are very expensive. The prescription versions are $800-900/month on average. If used for everyone that wants to use it, it will bankrupt the private and public payment systems for healthcare as they exist today and in the future. Compounded GLP1’s were discussed as they can lower cost drastically ($250-300/month on average) but the employers represented were reticent to absorb the uncertainties of covering non FDA cleared options for their benefit plans.
Dr. Nundy brought up the importance of dialing in the expertise of the primary care physician. Use evidenced base systems, explain you will likely need to be on these drugs forever, you will travel with it, you will not see results for 3 or more months then people will be more prone to balance the full picture of their options for weight management.
Tomorrow we will discuss the conversation that our founder John Lankford had with Colleen Lindholz, President of Kroger Health about the impact of nutrition on care, health, and weight management and important work that Kroger is doing to bring new ideas to the forefront of the conversation.