UHC 100% Passthrough Mirage, Employer Cost Increases, and The Effects of GLP-1s

Hey all,

I took a little break while traveling and for the MLK holiday. Now back to the exciting world of pharmaceuticals and employee benefits. Enjoy the rundown!

Jacob Brody (Co-Founder & CEO, ZorroRX)

(Cost Curve) Pharma Companies’ Responses to Medicare Drug Negotiation and UHC Rebate Policies 

Brian Reid covers a number of things in yesterday’s newsletter. His analysis of UnitedHealth Group announcing a commitment to 100% rebate passthrough by 2028 was comical and spot. His skepticism is well placed as insurers and PBMs an already created alternative workarounds to offset transparency pressures while maintaining profits. Full Article.

BenefitsPRO and Employers’ Challenges with Rising Healthcare Costs 

43% of employers are spending more on benefits this year, while only 4% are spending less. As healthcare costs rise, employers face increasing fiduciary pressures, driven by transparency legislation and litigation, prompting a shift to innovative strategies like PBM carve-outs ( and holistic wellness programs. Efforts to control costs include a focus on mental health support, comprehensive weight management through GLP-1 drugs, and social well-being initiatives, all while balancing the administrative burdens of compliance and leave management. Full Article.

(Nature) Medicine and GLP-1RAs’ Health Outcomes

A comprehensive study using U.S. Veterans Affairs data compared the health effects of GLP-1 receptor agonists (GLP-1RAs) to other diabetes medications and usual care, revealing both benefits and a few risks across 175 health outcomes. GLP-1RA use was linked to reduced risks of neurocognitive disorders, cardiometabolic conditions, and substance use. Patients saw manageable but increased risks of gastrointestinal issues, hypotension, and certain kidney and pancreatic disorders. Full Article.