Ozempic and other drugs like it have quickly become one of the most popular medications in the United States. But they are also some of the most expensive.
The CEO of Novo Nordisk, Lars Fruergaard Jørgensen, which produces Ozempic, has faced substantial criticism for hiking up the price of the beloved drug in the US when it costs far less in other countries. However, Jørgensen claims he is actually saving Americans money.
How Much Does Ozempic Cost?
Without insurance, a monthly supply of Ozempic costs around $935, and Wegovy, which is essentially the same drug, will cost about $1,300.
However, the exact same drugs cost 10 to 15 times less in Europe. In Denmark, a monthly supply is only $186; in Germany, it’s $137, and in the United Kingdom, it’s just $92. Which, of course, begs the question, why are Ozempic and Wegovy so much more expensive in the US?
Novo Nordisk Is “Ripping Off” Americans
While most people are left wondering why there is such a significant price difference, one man has decided to investigate.
Senator Bernie Sanders, chair of the Health, Education, Labor, and Pensions Committee, told the world in June, “It is clear that Novo Nordisk is ripping off the American people.” And Sanders created an entire Senate Committee to find out if they can stop the company from doing so.
Some People Have Even Called Novo Nordisk a Drug Cartel
Although Sanders hasn’t used these exact words, he and other Americans have subtly accused Novo Nordisk of operating as a drug cartel.
The general consensus is that Novo Nordisk has unfairly raised the costs of its drugs to outrageous levels simply because people want them and, well, because they can. However, the company has since responded to these allegations, saying they are “unfounded.”
Novo Nordisk CEO Finally Speaks Out
After Sanders announced that the Senate Committee would meet on September 24, 2024, to investigate Novo Nodisk’s pricing, the company was suspiciously quiet.
But finally, CEO Lars Fruergaard Jørgensen broke the silence by participating in an interview on NBC Nightly News earlier this month. He explained that not only is Novo Nordisk not a drug cartel, but his company is actually doing America a big favor.
Novo Nordisk Is Saving the American Taxpayer Money
In his interview, Jørgensen explained that his drugs, while expensive, are actually saving the American taxpayer money. He said, “If you look at just the cost of obesity in the U.S., it’s a disease that costs Americans more than $400 billion a year.”
He continued, “And we are actually providing products that’s actually helping take that cost burden off.”
Does Ozempic Really Help Minimize Money Spent on Obesity?
Now, Jørgensen didn’t provide any data to prove that Americans are spending less on obesity since Ozempic and Wegovy hit the market. But experts say it’s very unlikely that he has any.
As Stacie Dusetzina, a health policy professor at Vanderbilt University in Nashville, Tennessee, explained, “For many people, these drugs might be a very good option for improving their health, but it is unlikely that they will reduce total spending.”
Obesity Is More Expensive
Those with obesity do indeed cost the American healthcare system much more than those without the condition. One study showed that Americans with obesity had an average of $12,588 in annual healthcare costs, whereas those without only spent around $4,699.
However, as Dusetzina said, “In general, the price of these drugs would need to come down a lot in order to have a chance for them to produce overall savings in health care spending.”
Blaming the American Healthcare System
Jørgensen also said that he has “volunteered” to speak at the Committee hearing at the end of the month, where he will have to provide evidence to support his claim that Ozempic and Wegovy save Americans money.
Additionally, Jørgensen said he will discuss the “complexities of the U.S. healthcare system, which is a system we take part in but we cannot change,” and how he believes “policy change” is necessary at the hearing.
The American Healthcare System Is Broken
Jørgensen’s point is that the US healthcare system is the problem, not his company. In other countries, like those in Europe where Wegovy and Ozempic are far more affordable, the healthcare systems ensure that private companies cannot charge whatever they want for medication.
But that’s not the case in the United States. Jørgensen is well within his rights to set his prices as he sees fit, as is every other American pharmaceutical company.
Why Don’t Insurance Companies Cover Ozempic?
It’s important to understand that while a monthly supply of Ozempic can cost up to $1,000, it would only cost $25 with the right insurance. However, the vast majority of insurance companies do not cover the drug.
The reason why is quite simple: the Food and Drug Administration (FDA) has yet to approve Ozempic and Wegovy for weight loss. As of right now, they can only be legally prescribed for those with Type 2 diabetes.
Will Ozempic Be Cheaper After the Senate Hearing?
Many Americans who are desperate to use the weight loss drugs are wondering if they will be more affordable after the hearing at the end of September.
Of course, that’s what Sanders wants. However, it will be extremely challenging for him to prove that Jørgensen and Novo Nordisk are actually “ripping off” the American people and not just participating in the nation’s capitalist system.
