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CVS says GLP-1s save money when priced below $350 per month
CVS Health says health plans could break even on GLP-1 medicines if their price fell below $350 a month, because reduced use of medical services could offset prescription spending. Its analysis found that at current prices, the medicines still raise overall costs, a finding relevant as employers weigh whether to cover them amid rising premiums.
The analysis compared new users of medicines including Ozempic, Mounjaro, Wegovy and Zepbound with similar non-users, using claims data from 2023 to 2025. GLP-1 use was associated with 10% to 12% fewer emergency visits in the first two years; among 4,000 people still taking the drugs after three years, hospitalisations fell by 34% to 42%. Over three years, plans saved $9,400 per person on medical bills but spent $13,300 more on prescriptions, a net increase of $3,900; savings varied with patients’ health risks.
In short
- CVS estimates GLP-1s need to cost below $350 monthly for plans to break even.
- Three-year medical savings were outweighed by higher prescription spending.
- Patients at higher risk may generate savings sooner.