Consumers averse to GLP-1 costs, most unwilling to pay over $100 out of pocket per month: KPMG

 Though Eli Lilly and Novo Nordisk have recently taken steps to make their uber-popular GLP-1 drugs more affordable for certain consumers, many are still turned off by the meds’ sticker shock.

That’s according to the latest edition of KPMG’s annual survey (PDF) of American consumers, which polled 2,500 adults about their economic outlooks and views on a wide variety of sectors, including the healthcare and life sciences industries.

In the latter case, many of the questions revolved around GLP-1s. For example, respondents were asked about what they see as the biggest health benefits of the drug class. Two-thirds cited weight loss, while 56% pointed to the meds’ aiding in diabetes management, followed at some distance by those who highlighted GLP-1s’ potential help in cardiovascular disease and mental health.

Despite broad awareness of the drugs’ possible benefits, their price tags remained a major negative for consumers. When asked whether they’d be willing to pay higher insurance premiums if GLP-1s were covered, only a minority of all respondents said they would. 

Younger generations were more willing to pay higher premiums for access to the drugs: The 27% of Generation Z respondents who answered yes were the highest of all generational segments, with the percentage getting progressively smaller as ages increased, culminating in only 6% of baby boomers saying they’d be willing to pay the higher premiums.

The adults surveyed were overwhelmingly averse to out-of-pocket costs for GLP-1s. Only 20% said they’d be willing to pay up to $100 per month for the meds. Overall, per KPMG, more than 70% of those surveyed said they would not be willing to pay out of pocket for GLP-1s.

“Consumers in the age of precision medicine are discerning about their treatment choices, considering both efficacy and affordability. As they become more informed about GLP-1s, they recognize the benefits but are still wary of the personal cost,” Kristin Pothier, leader of KPMG’s U.S. life science sector, said in a statement to Fierce Pharma Marketing.

Consumer costs for GLP-1s like Novo’s Ozempic and Wegovy and Lilly’s Mounjaro and Zepbound vary widely based on insurance coverage and access points. Many insurers refuse to cover weight loss drugs—including Medicare and Medicaid—and even those that offer coverage can still charge hefty copays and deductible payments.

In recent months, however, both Novo and Lilly have taken steps to lower the costs of their GLP-1s for self-paying patients. Lilly currently offers various doses of Zepbound for $349 and $499 per month through its LillyDirect online pharmacy. Novo sells all doses of Wegovy for $499 to eligible self-pay customers through its own online platform, in retail pharmacies and via several telehealth providers.

Though the self-pay discounts mark a steep drop from the drugs’ list prices—without insurance, a month’s supply of Wegovy, for example, is about $1,350—they’re still well above the $100 out-of-pocket maximum desired by KPMG’s survey respondents.

As Pothier added in the statement, “Pharmaceutical companies have the opportunity to continue educating consumers while seeking to strike an optimal price point.” 

https://www.fiercepharma.com/marketing/consumers-remain-averse-glp-1-costs-most-unwilling-pay-more-100-out-pocket-kpmg