Michail_Petrov-96 Blue Cross Blue Shield of Michigan intends to drop coverage of GLP-1 obesity drugs for certain plans due to concerns about their cost, safety and efficacy, according to Bloomberg. The health insurer plans to discontinue coverage for fully insured large group commercial plans beginning in January. The insurer cited efficacy, safety, access and cost as reasons behind the change, but didn’t immediately respond to questions about how many patients would be impacted or what safety concerns it had about the drugs, Bloomberg said in its report .
Semaglutide and tirzepatide are currently the two most prescribed GLP-1 drugs for weight-loss. Novo Nordisk ( NVO ) markets semaglutide for weight loss under the name Wegovy, while Eli Lilly ( NYSE: LLY ) sells tirzepatide for weight loss under the brand name Zepbound. Semaglutide and tirzepatide are also used to treat diabetes.
Bloomberg said the drugs can cost over $1,000 per month per user. It noted that Medicare currently doesn’t cover GLP-1s for weight loss. Several other companies also have GLP-1 drugs in development, including Viking ( VKTX ), Pfizer ( PFE ), Amgen ( AMGN ), Altimmune ( ALT ) and Structure Therapeutics ( GPCR ).
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