NC put in spotlight during congressional hearing on weight loss drugs cost with company's CEO
WASHINGTON (WTVD) -- Tuesday the makers of Ozempic and Wegovy faced tough questioning on Capitol Hill over the high cost of their weight loss drugs. It comes as new CDC data shows that more than 40% of adults in the US are technically obese, and many private insurers and Medicare don't cover weight-loss drugs used for obesity.
During the hearing, there was a lot of finger-pointing, and lawmakers demanded answers as to why Americans are paying more for weight loss drugs than other countries. The company's CEO that makes Ozempic and Wegovy blames the US healthcare system.
Senator Bernie Sanders said during the hearing to Novo Nordisk CEO Lars Fruergaard Jrgensen, "Treat the American people the same way that you treat people all over the world. Stop ripping us off." That was the message from lawmakers today during the Senate Health Committee hearing questioning why in the US there is such a high cost for the weight loss and obesity drugs Wegovy and Ozempic compared to what other consumers in other countries pay. Senator Mitt Romney added, "I happen to believe that one of the reasons our healthcare cost is so expensive, particularly as it relates to pharmaceuticals is the opaque nature of our pricing in this country."
Stop ripping us off!Sen. Bernie Sanders
According to the Senate Committee, the price for Ozempic is $969 per month in the US. In Canada, you can get it for $155 per month, and in Germany, it's only $59. For Americans with obesity, the price for Wegovy is even higher, more than $1,300 monthly. After insurance and rebates the price that people pay at the pharmacy counter is typically much less.
During the hearing, Jrgensen said they aren't responsible for deciding what price patients pay their insurance companies and he argued that pharmacy benefit managers get in the way of companies passing discounts on directly to patients. He adds, "A very complex market and a very complex healthcare system that creates a lot of misunderstandings." Jorgensen also stressed the company is investing $30 billion to increase production and access to weight loss drugs, $4 billion of that in Clayton to build a second manufacturing facility which also creates thousands of jobs.
During the hearing, Sanders also mentioned North Carolina and how the state ended coverage of Wegovy for state employees due to the cost. Sanders referenced why North Carolina's Treasurer Dale Folwell ended coverage. "If he did not discontinue covering Wegovy for some 20,000 state workers in NC, he would have been forced to double health insurance premiums for teachers, firefighters, police officers in his state regardless if they needed this drug or not."
NC Treasurer Dale Folwell tells ABC11 the state was being "gouged" and they were on the path to spending nearly $170 million a year for state employees on these drugs. Folwell adds, "We appreciate Novo Nordisk being a taxpayer and employer in our state, but the fact is, we have a drug tax when people can acquire this drug for $90 or $100 bucks in England and it's costing those that teach, protect and otherwise serve over $1,000 a dose in the state health plan."
During the hearing, Jrgensen did agree to meet with pharmacy benefit managers to discuss lowering the cost of Ozempic and Wegovy as he said the company is committed to making sure Americans have access at an affordable price.
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