GLP-1 drugs - Ozempic, Wegovy, Mounjaro and others - first attracted attention for their ability to manage and aid weight loss in diabetes patients. With such profound results, the drugs soon found Hollywood notoriety, before becoming popular with everyday users looking to fast track their weight loss efforts. Unsurprisingly, expenditure of semaglutide - the active ingredient in these medications - reached $38.6bn in 2023.

The surge in popularity of GLP-1 drugs has had a profound impact on healthcare systems - notably within the U.S. Currently, both Medicare and Medicaid have limited coverage for GLP-1 to treat weight loss (although legislation could soon change this), but the recent approval of Wegovy for the prevention of cardiovascular complications opens up an additional route for patients to access treatment which could result in ballooning costs if these drugs are prescribed more widely.

Critics argue that the high costs of these drugs (typically priced at $12,000 per patient, annually) could jeopardize the financial stability of Medicare and Medicaid, especially when the same drugs in different countries are significantly cheaper. Private medical insurance is also feeling the impact. Insurers have started limiting access to the drugs, through eligibility restrictions, care management programs and other restrictions set to reduce annual cost increases for clients. Leading critic, Bernie Sanders, has highlighted that existing prices could lead to increased insurance premiums and taxes for all Americans, regardless of their use of these drugs.

A saving grace for healthcare systems is that patients may be inclined to access their own treatment through private clinics and spas. Whilst this reduces the burden of national healthcare systems by shifting the financial burden onto consumers, individuals could face higher costs but risk insufficient medical guidance that could lead to potential misuse or inadequate management of side effects.

Despite this, the overall financial impact on the healthcare system is compounded by the limited alternatives for safe and effective weight loss. Undeniably, GLP-1 drugs already offer significant health benefits, but their high costs remain a major barrier to widespread use at current rates. A future that sees widespread, positive usage of GLP-1 drugs will require policy interventions, such as price negotiations and/or the introduction of more affordable alternatives, to prevent these drugs from becoming an anticipated burden for global healthcare systems.