The Cigna Group is expecting a program that offers employers ways to manage the high cost of new weight loss drugs to grow.
On a Nov. 2 call with investors, Cigna CEO David Cordani said the surge in demand for GLP-1 drugs is a good example of how Evernorth, Cigna's health services arm, can provide value. The company launched its EnCircle Rx program, which offers coordinated care for obesity, diabetes and cardiovascular disease andimproves affordability for clients, Mr. Cordani said.
"We are uniquely well positioned to make medicine more accessible, affordable and clinically coordinated for those we serve as well as to continue to drive growth for our company," Mr. Cordani said.
Eric Palmer, CEO of Evernorth told investors the EnCircle Rx program is the first of its kind. The program brings together pharmacy network management and clinical support, engaging patients with additional support to make the medications most effective.
"In short, we're really optimistic and excited about the opportunity this product brings to self-funded markets and would expect additional growth as we look into 2024 and beyond," Mr. Palmer said.
Mr. Cordani said he believes the company is well-positioned to manage new, high-cost therapies such as Alzheimer's treatments, gene therapy and novel cancer treatments.
GLP-1 drugs, which include Ozempic, Trulicity, Victoza and Mounjaro, are approved to treat Type 2 diabetes, though they are prescribed off-label for weight loss. Wegovy and Saxenda, manufactured by Novo Nordisk, are approved for weight loss.
The drugs are expensive, costing upward of $10,000 a year without insurance. Some employers will pay for the cost of weight loss drugs for their employees while others have dropped them due to the high cost. Studies show patients have to take the drugs indefinitely to maintain weight loss.
Other payers are targeting the high-costs of GLP-1 drugs. On an Oct. 13 investor call, UnitedHealth Group CEO Andrew Witty said drug manufacturers have to be willing to engage in negotiations to lower the drugs' costs through value-based contracts or other arrangements.
Mr. Palmer told investors Evernorth is well positioned to use competition to bring the cost of GLP-1 drugs down over time.
"I don't know that it's constructive to talk about any of the ongoing dialogue with manufacturers, but rest assured that we are very engaged with the variety of pharma manufacturers in this space, looking at ways to expand access and improve affordability," Mr. Palmer said.