Reports indicate that health care spending is expected to increase due to the introduction of Ozempic-like drugs.

Two new reports released on Wednesday indicate that spending on GLP-1 drugs like Ozempic and Wegovy significantly increased last year and is projected to continue rising in the future, causing concerns for the U.S. healthcare system and the federal government. According to one study by the American Society of Health-System Pharmacists, GLP-1 treatments were identified as a major driver behind the overall increase in drug spending by health entities, such as pharmacies and hospitals, in the previous year. Specifically, expenditures on Novo Nordisk’s semaglutide, marketed as Ozempic for diabetes and Wegovy for obesity, doubled to $38.6 billion, making it the top-selling drug in 2023.

The second report, conducted by health policy research organization KFF, focused on the impact of the recent approval of Wegovy for preventing cardiovascular complications. Medicare is typically prohibited from covering medications for weight loss purposes, but the approval of Wegovy now allows the federal payer to cover the drug when prescribed to reduce heart risks. As a result, researchers estimate that Medicare could spend $2.8 billion annually on this single drug. These reports highlight the escalating costs associated with GLP-1 drugs and their potential financial implications for healthcare systems and government payers moving forward.