Drug pricing watchdog ICER offers ways to increase obesity drug access
Title
"ICER Proposes Strategies to Expand Access to Costly Obesity Medications"
Keywords
- ICER (Institute for Clinical and Economic Review)
- Obesity treatment
- GLP-1 drugs (e.g., Wegovy, Saxenda)
- Drug pricing
- Access and affordability
- Semaglutide
- Healthcare policy
- Step therapy
- Obesity management
- Treat and Reduce Obesity Act (TROA)
Key Facts
- ICER's Objective:
The Institute for Clinical and Economic Review (ICER) aims to address the limited access to obesity treatments like semaglutide (Wegovy) through policy recommendations and affordability measures14.
- Current Cost Barriers:
Medications such as Wegovy and Saxenda are considered effective but expensive, with annual prices exceeding typical cost-effectiveness thresholds. For example, semaglutide's cost per year is approximately $13,618, far exceeding ICER’s recommended range of $7,500–$9,80016.
- Access Challenges:
Less than 10% of qualified patients can access GLP-1 medications through insurance due to high costs, payer hesitancy, and restrictive utilization policies, such as step therapy and prior authorization57.
- Policy Recommendations:
* - Manufacturers:*
Set drug prices proportional to their demonstrated health benefits.
* - Payers:*
Ensure insurance designs grant fair access and minimize excessively restrictive policies like prior authorization.
* - Government:*
Enact laws such as the Treat and Reduce Obesity Act (TROA) to expand Medicare coverage for weight-loss drugs. States should also include these treatments under Medicaid programs45.
- Economic Impact:
ICER has highlighted the potential strain of high budget impacts from obesity drugs on healthcare systems, necessitating pricing reform and broader accessibility initiatives to prevent inequities in treatment availability147.
- Future Forecasts:
Legislative actions like TROA and ongoing outcomes studies (e.g., cardiovascular benefits of Wegovy) may shape a more favorable access landscape for obesity therapies, with reduced prices under acts like the Inflation Reduction Act in the coming years45.
Sources:
1. https://icer.org/news-insights/press-releases/icer-publishes-final-evidence-report-and-policy-recommendations-on-treatments-for-obesity-management/
4. https://icer.org/wp-content/uploads/2022/10/ICERObesityPolicyRecommendations102022.pdf
5. https://healthadvances.com/insights/blog/the-market-access-landscape-for-obesity-drugs
6. https://www.fiercepharma.com/pharma/icer-obesity-review-urges-significant-discount-novo-nordisks-wegovy
7. https://www.managedhealthcareexecutive.com/view/icer-finds-insurers-struggled-to-provide-fair-access-for-obesity-drugs