Recent work published by the Kim Research Group in JAMA Health Forum received national attention this week when it was covered by the New York Times. Our project, led by Dr. Jennifer Hwang, found that prices of anti-obesity medications need to be lower to achieve cost-effectiveness. The Times highlighted the importance of the issue: the huge demand for the new, expensive drugs has significant financial implications for patients, private insurers, Medicare, and the entire health system.

Quoted in the article, Dr. David Kim said:

“There’s no doubt that the drugs are demonstrating tremendous health benefits. The problem is the price is too high.”

This project evaluated the cost-effectiveness of Tirzepatide (Mounjaro®, Zepbound®) and Semaglutide (Ozempic®, Wegovy®, Rybelsus®). Our research team used the validated Diabetes, Obesity, Cardiovascular Disease Microsimulation (DOC-M) model to project long-term health outcomes and health care expenditures for US adults with diabetes when taking these medications. The results showed both drugs provide substantial long-term health benefits but are not cost-effective at current net prices, and the authors recommended efforts to reduce prices to ensure equitable access.