Expensive GLP-1 drugs are just one of many factors driving up medical costs, Elevance Health CFO John Gallina said.
Payers have warned of rising medical utilization, driven by a return to care delayed during the pandemic, behavioral health utilization and demand for expensive GLP-1 drugs.
On a July 19 call with investors, transcribed by Seeking Alpha, Mr. Gallina said current utilization trends are in-line with the company's expectations for the year.
"[GLP-1 drugs are] one element of a multitude of elements as part of an overall trend conversation. And as I said, trend overall is consistent with our expectation," Mr. Gallina said.
Some payers are proposing premium increases for 2024, saying demand for GLP-1 drugs like Ozempic and Wegovy is one of the factors behind rising costs.
GLP-1 drugs, including Ozempic, Trulicity, Victoza and Mounjaro, are FDA approved to treat Type 2 diabetes while Wegovy and Saxenda are approved for weight loss. The drugs can cost patients more than $10,000 a year without insurance coverage.
Though UnitedHealthcare and Humana have pointed to delayed care during the pandemic as a major factor contributing to rising costs, Mr. Gallina said Elevance Health has not seen a lot of "pent-up demand for care."
"There certainly can be small pockets of that. But in general, the healthcare system was pretty much open for business quite significantly in 2022. There may have been some staffing shortages that impacted that ever so slightly, but not all that significantly, we don't believe," Mr. Gallina said.