Payers are cracking down on prescriptions for expensive GLP-1 drugs like Ozempic and Wegovy, but these drugs could provide a boost to the pharmaceutical benefit sides of payers' businesses, executives told investors.
GLP-1 usage is "top of mind" for many of the Cigna Group's clients, Eric Palmer, president of Evernorth, Cigna's health services arm, told investors on an Aug. 3 call.
Cigna CFO Brian Evanko said growing utilization of GLP-1 drugs is a "net positive" for Evernorth's earnings.
"GLP-1 utilization does continue to build, which in the Evernorth business is a positive contributor to our earnings at this point in time, whether that be for diabetic indications or non-diabetic indications," Mr. Evanko said.
CVS Health CEO Karen Lynch said the insurance side of the business has "priced appropriately" for rising GLP-1 usage.
"As you look at the pharmacy services business, we believe this is going to be a competitive category for us over time, and quite frankly is the reason why, as you know, PBMs exist. We have the opportunity to create competitiveness, provide lowest net cost, give additional programs," Ms. Lynch said on an Aug. 2 call with investors.
John Gallina, CFO of Elevance Health, said rising use of GLP-1 drugs is just one element of rising costs across the healthcare system.
"Can there be an upside on CarelonRx? Well, certainly a small one, but not enough to really change the trajectory at this point," Mr. Gallina told investors July 19.