Americans Spent $71 Billion on Drugs Like Ozempic in 2023

Over the last few years, Ozempic has become a household name. And according to a new research letter published this month in the Journals of American Medical Association (JAMA), it — and its fellow glucagon-like peptide-1 receptor agonists (GLP-1 RAs) — have also become a much more common line-item in American household budgets.

Between 2018, just after Ozempic was first released, and 2023, U.S. consumer spending on this class of medications has increased 500%. In the latter year, patients and insurers spent a total of $71.7 billion on the drugs.

Spending on GLP-1 RAs is on the rise

The study, headed by researchers affiliated with the AMA and the Centers for Disease Control and Prevention (CDC), analyzed total U.S. spending on GLP-1 RAs between 2018 and 2023. The data captured 85% of retail and 74% of mail-order prescription fills among adults aged 18 and over during that time.

While total spending on the entire class of drugs rose precipitously during this time, it did vary by brand name and product type. Ozempic, or semaglutide, saw the most staggering increase — from $0.4 billion in 2018 to $26.4 billion in 2023, or a 6,500% increase. Trulicity, or dulaglutide, increased from $5.6 billion to $17.6 billion, while the combined spending on liraglutide and exenatide products, like Victoza, Bydureon and Byetta, actually decreased by $4 billion dollars during this time.

While GLP-1 RA medications have been approved since 2005 as a treatment for type 2 diabetes, their ability to induce weight loss was simply seen as a benevolent side effect.

Although Saxenda, a liraglutide product, was approved for weight loss in 2014, it wasn’t until semaglutide — the medicine in Ozempic and Wegovy — hit the scene later in the decade that this use of the drug became popular.

The trend may be owed to the greater efficacy of semaglutide for weight loss: One 2022 clinical trial found that patients lost an average of 15.8% of their body weight after 68 weeks on semaglutide, compared to just 6.4% for those on liraglutide.

While Ozempic remains off-label as a weight loss treatment, the Food and Drug Administration (FDA) approved Wegovy — which contains an identical medication — for chronic weight management in 2021.

The research letter suggests that the increased GLP-1 RA spending is directly related to patients seeking the weight-loss effect of the drug: In 2023, semaglutide products like Ozempic, Rybelsus and Wegovy — as well as tirzepatide or Mounjaro — represented 70% of all spending in the drug class.

The cost of Ozempic and similar medications

For many patients who have battled with obesity for years, semaglutide drugs are an unprecedented miracle.

"This medication has given me my life back," Latisha Doty, who lost 118 pounds in two years on Mounjaro, told People Magazine.

But this particular miracle remains an expensive one for many: The list price for Wegovy tops $1,300 for a one-month supply. While some health insurance companies may cover the drug, especially for patients with at least one comorbidity associated with obesity (such as high blood pressure or high cholesterol), coverage is not guaranteed — and it’s important to read your policy information to understand your coverage before you commit to what may be a long-term treatment plan.

While insurance coverage of Ozempic and other GLP-1s can substantially lower the out-of-pocket cost of the drugs, some studies suggest its cost could be as low as $1 per month — and still be profitable for the manufacturer.

On the other hand, some economists predict that the increase in GLP-1 medications may actually help grow the U.S. economy by increasing spending in the fitness, clothing and travel sectors.

Only time will tell how these relatively new medications affect our wallets and waistlines over the long term.