Weight-Loss Drugs and the Problem of Inequality

Weight-loss drugs like Wegovy and diabetes drug Ozempic are making their manufacturers billions of dollars as the demand for the drugs continues to skyrocket. In March of this year, Wegovy was approved by the FDA for heart conditions, as a study showed that it can reduce the risk of heart attack and stroke by 20%. This is welcome news, especially in the U.S., where heart disease is the leading cause of death. But the difficulties in obtaining these so-called “miracle” drugs remain profoundly unequal.

New data confirms that there are extreme racial disparities in who gets Ozempic and Wegovy. According to NBC, in 2023, 85% of the more than 4 million semaglutide prescriptions were dispensed to white people. This is despite the fact that Black individuals, and particularly Black women, have more deaths from obesity-related cardiovascular disease and are 60% more likely to be diagnosed with diabetes. And according to a study from KFF, Black people were 1.5 times more likely to be uninsured than their white peers in 2022. That’s a severe disparity when considering the costs of these medications.

Semaglutide medications are extremely expensive when not covered by insurance. Despite new evidence that Ozempic could be manufactured for less than $5 a month, its manufacturer Novo Nordisk is charging almost $1,000 for a month’s supply. Wegovy also costs more than $1,300 a month without insurance. This price differential has helped make Novo Nordisk worth more than $550 billion.?

Though both Medicare and some major private insurance plans now cover Wegovy, the drugs remain out of reach for the vast majority of people. For one thing, the increased coverage is limited to those who have heart conditions, as a 2003 law prohibits Medicare from covering weight loss drugs and private insurance companies often consult Medicare when deciding what they will cover. And while Medicaid is supposed to cover these drugs at least for people with diabetes, the rising costs mean that when it comes to weight loss, states are limiting the patients that can get them, increasing copays, or dropping coverage of the drugs altogether.

Genius Guild believes that everyone should have access to the medical care they need, particularly in an unequal society. Many of our portfolio companies do just that while also providing profits for their investors. For example, Health in Her HUE–which closed a $3 million seed round in January–is working to provide personalized and equitable healthcare, particularly for Black women. We are proud to work with companies that are trying to provide everyone access to the health care they need.