Employers not ready to cover new weight-loss drugs, Cigna CEO says

Employers are hesitant to cover the cost of GLP-1 drugs for their employees, the Cigna Group CEO David Cordani said. 

On a May 5 investor call transcribed by Seeking Alpha, Mr. Cordani said the drugs are a positive step forward for the treatment of diabetes. 

"But to date, I'd also add that employers have had a more limited appetite to expand coverage beyond clinical diagnoses such as diabetes for certain lifestyle treatment," Mr. Cordani said.  "There has been some, but we've seen more limited adoption of that thus far." 

GLP-1 drugs — including Ozempic, Trulicity, Victoza and Mounjaro — are used to treat Type 2 diabetes. Wegovy and Saxenda are approved for weight loss. The drugs can cost thousands of dollars a month. 

Payers typically do not cover newer drugs meant for treating obesity but do often cover drugs meant to treat diabetes, while Medicare never covers new weight loss drugs. GLP-1 drugs marketed for weight loss are typically not covered, though the same drug marketed for diabetes treatment is typically covered.

Other payer leaders also said use of the drugs is currently limited, but increasing. UnitedHealthcare CEO Brian Thompson said the payer is seeing increased use of GLP-1 drugs. 

"The overwhelming majority of that is in diabetic care, and it is as we had expected, low single digits in terms of weight loss use. I would say that our on-label usage has been well managed with our authorization requirements," Mr. Thompson told investors on April 14. 

Mr. Cordani said coverage of monoclonal antibody treatments for Alzheimer's disease, another expensive treatment, is also limited among employers. 

The interest in new specialty drugs is a growth opportunity for the Cigna Group's clinical services arm, Evernorth, Mr. Cordani told investors. 

"We see this as a growth opportunity within the Evernorth portfolio, and the clinical depth we have in there in terms of coordinating services for individuals will be helpful in terms of ensuring that the value is delivered," Mr. Cordani said. 



Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Top 40 articles from the past 6 months