Feb 26 (Reuters) - Medicare spending on some diabetes
drugs, including popular treatments such as Ozempic, surged
nearly five-fold to $35.8 billion between 2019 and 2023, a U.S.
government watchdog's report showed this week.
Medicare, the government-backed program for adults aged 65
and older and those with disabilities, only covers the use of
GLP-1 drugs for diabetes, but not for weight loss.
Spending on older medicines like metformin, used only
for diabetes, declined. But that of popular GLP-1 drugs such as
Novo Nordisk's Ozempic surged over the five years,
the report by the U.S. Department of Health and Human Services'
Office of the Inspector General showed.
Ozempic, which has also been used off-label for obesity,
saw a more than 16-fold rise in spending to $9.2 billion in 2023
from 2019 - roughly doubling every year.
Surge in their use merits further inquiry into whether the
claims were paid for appropriate use, the watchdog said.
The report comes three months after former US president Joe
Biden's outgoing administration proposed expanding coverage of
GLP-1 drugs to weight loss. It would be effective in 2026 if
President Donald Trump's administration backs the move.
"The data brief may provide ammunition for HHS Secretary
Robert Kennedy Jr. and others who see the surge in GLP-1 use as
a symptom of 'overmedication' more generally in the US," said TD
Cowen analyst Rick Weissenstein.
He added that the data could give Kennedy a reason to
kill the proposed rule.
Kennedy has criticized drugs like Ozempic, which Novo also
sells under the brand Wegovy for weight loss, saying it focused
on symptoms of the obesity crisis rather than fixing the food
system.
The list included popular GLP-1 drugs like Novo's Ozempic,
Rybelsus and Victoza, as well as Eli Lilly's ( LLY ) Mounjaro
and Trulicity.
The drugmakers did not immediately respond to a Reuters
request for comment on the report.