Glucagon-like peptide 1 receptor agonists (GLP-1 agonists) have long been a fixture in diabetes treatment, but recent shifts in efficacy, FDA approvals for weight loss indications, and rising consumer demand prompted Morgan Company to compile a comprehensive “Market Perspectives” report aimed at employers. The report delves into three key insights.
The authors anticipate sustained demand for GLP-1 agonists, fueled by employer recognition of their value, heightened media awareness, and the drugs’ ability to address multiple health conditions. GLP-1 agonists, designed to mimic the effects of glucagon-like peptide-1, not only assist in glycemic control for diabetes but also offer weight loss benefits by curbing appetite. The report emphasizes the role of advanced primary care, powered by appropriate technology, in delivering effective obesity care. It underlines the importance of developing strategies to maintain high-quality care while addressing the increasing demand for GLP-1s.
Employer Coverage Policies for GLP-1 Agonists and the Evolving Landscape of Obesity Management
Employers face challenges in determining coverage policies for GLP-1s, especially given the drugs’ presence in the news cycle. The debate around prescribing for obesity as a chronic condition adds complexity, requiring employers to decide on continuous or limited authorization periods, considering the drugs’ monthly list prices averaging $1000.
The discussion extends to pharmaceutical market dynamics, with the report noting that employer-initiated outcomes-based contracting remains rare. In obesity management, some companies are incorporating pharmacotherapy into treatment protocols, offering value-based payment models, and assessing employer receptiveness to quality metrics in vendor management contracting.
Reimagining Obesity Care and Outcomes-Based Contracting in Pharmaceutical Coverage
The report acknowledges ongoing debates, such as Eli Lilly’s caution against cosmetic use of its drugs, emphasizing their intended purpose for treating serious diseases. Employers are navigating coverage rules, some requiring consideration of alternative treatments before granting access to GLP-1s. The authors propose a reevaluation of the existing obesity care paradigm, emphasizing the crucial role of primary care providers in ensuring the success of GLP-1 treatments.
Looking forward, the report highlights a potential shift in employer attitudes toward outcomes-based contracting in the pharmaceutical market, especially within obesity management. Market intelligence is being gathered to gauge broader adoption and employer interest in incorporating quality metrics into vendor management contracting. The evolving landscape calls for a strategic approach to meet the growing demand for GLP-1s while addressing coverage challenges and advancing obesity care paradigms.
Resource: Pharmexec, January 12, 2024
This article has been prepared with the assistance of AI and reviewed by an editor. For more details, please refer to our Terms and Conditions. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author.
