UnitedHealth Group execs eye more affordable GLP-1s

You’re not alone: The costs of new injectable diabetes drugs—which have become an increasingly popular yet expensive weight loss tool—are also keeping UnitedHealth Group executives up at night.

Despite the growing demand for drugs like Ozempic and Mounjaro, UnitedHealth Group CEO Andrew Witty recently told investors that his company and its clients (including employers and payers) are struggling to afford the list US prices for GLP-1s, which can cost $1,000+ per month—much higher than the rates paid in Europe, where the price tag hovers closer to $100 a month.

“Innovation that is not affordable is not innovative. That’s really the key to all of this,” he said in an October 13 earnings call. “Nothing would make us happier, honestly, than to be able to lean forward and see more and more folks taking advantage of these sorts of opportunities. But ultimately, it has to be affordable.”

With clients sending UnitedHealth Group “a very, very clear signal” that they need help making GLP-1s more attractive for their employees and members, Witty said UnitedHeath Group is focused on finding “a way to make this sustainable and affordable.”

To do that, executives are working with drug manufacturers “to get to some aligned value-based constructs, getting pricing to a point where it’s based on outcomes and adherence levels—all the way to outright risk on utilization levels,” said Brian Thompson, CEO of UnitedHealthcare, the health benefits arm of UnitedHealth Group. The execs are looking to pair GLP-1s with therapies and programs, so patients are less reliant on the medications in the future.

“We’re not there yet, but we’re optimistic that we can get there,” he said. “But clearly, price point is a key barrier.”